Global Compact Network Singapore

Case Studies

Case study: Fuji Xerox Singapore

fuji xerox

Business:
Document technologies, services, software, supplies and document-centric outsourcing.

Company type:
MNC
Wholly-owned subsidiary of Fuji Xerox (Japan)

Employee size:
850 in Singapore

Website:
http://fujixerox.com.sg/

Why did the company embark in CSR? 

  • Company business philosophy
  • Direction set from headquarters is translated to policy and framework for implementation at local office
  • Holistic perspective of sustainability incorporated into company culture

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The Fuji Xerox brand was created as a joint venture between FujiFilm and Xerox Corporation in 1962 to develop, produce and sell xerographic and document-related products and services in the Asia-Pacific region. Fuji Xerox Singapore (FXS), a wholly-owned subsidiary of the parent company, was established in 1965.

From its initial role as a company that provides customers with the technology to duplicate information on paper, Fuji Xerox’s business has evolved to one in which innovation is part of its business model. However, the essence of its business – which is to help customers and society foster mutual understanding through better communications – remains unchanged. What has changed is the manner in which this business philosophy is implemented: through document technologies, services, software, supplies and document-centric outsourcing. As Mr. Tadahito Yamamoto, President and Representative Director of Fuji Xerox Co. Ltd said in his message on the company’s website:

“Times have changed in terms of doing business; companies are now collaborating with each other to move a project forward rather than handling everything themselves. It is becoming increasingly crucial to distribute and share information rapidly and accurately to develop an environment that allows creation of new knowledge. Communication not only supports businesses but also decides the changes they make.”

Today, Fuji Xerox’s business focusses on rental service: providing utility rather than devices, and a wide range of products and services to support customers in communications and creating values.

At the Group Level

The Good Company Concept

In 1992, Fuji Xerox established the ‘Good Company Concept’ (see below) as a foundation of management and aims to strike a balance of the following three attributes:

  • A ‘strong’ company that delivers excellent products and services that satisfy customers;
  • A ‘kind’ company contributes to local and global communities in terms of environmental conservation, ethical behavior, and social contribution;
  • An ‘interesting’ workplace that its employees find fulfilment and growth.

This ‘Good Company’ concept laid the foundation of its CSR system later.

FujiXerox

Shared Values at Fuji Xerox

The company also has a set of shared values comprising 10 value statements, each emphasizing its responsibility and setting forth how it should approach business as members of society and as individuals based on a fundamental respect for humanity. More about Fuji Xerox’s values can be found on http://www.fujixerox.com/eng/company/profile/philosophy/comment.html

FujiXerox diagram2

CSR Policy and Management System
With this foundation in place, in 2007, Fuji Xerox drafted a basic CSR Policy to enhance its CSR policy so that the company and its affiliates can work together to enhance CSR-related activities. More about its CSR Policy can be found at http://www.fujixerox.com/eng/company/csr/plan/ .

The company put in place a CSR Management System which incorporates its stakeholders’ expectation and demands into its management practices which operates on the principle that “CSR is synonymous with corporate management”. More about Fuji Xerox’s CSR Management System can be found at http://www.fujixerox.com/eng/company/csr/structure/. In 2010, Fuji Xerox added the CSR Committee to other company-wide steering committees as part of its effort to fully integrate CSR into its business management. The CSR Committee brings Fuji Xerox executives together to discuss best practices for CSR management from the standpoint of various stakeholder groups, with the aim of forging a link between long-term competitiveness and the sustainable development of society and the company. Since July 2012, the CSR Committee has been holding meetings at least once a month to identify CSR issues in each of its stakeholder groups, so as to set corporate commitments for improvement (CSR indicators), and deliberate future directions and concrete policy measures for CSR management at the executive level.

At FXS

FXS believes that reputation and credibility are integral to its business sustainability. Its relationships with customers, employees, the community and the environment are keys that will help maintain the company’s reputation and credibility. Hence, the company’s approach to sustainability focuses on creating value holistically for these key stakeholders through its products and services, and this includes making measureable impact to the business environment. In its ‘360O of Sustainability’ (below) viewpoint, the company tries to address sustainability at every step in the value chain, from parts procurement through an extensive supply chain, to its product design, manufacturing operations, to customer use and disposal of its products at end of life.

How did the company go about with its CSR journey?

  • Environmental sustainability
    • Has an environment policy. Since 2003, has an Environment Management System in place which looks at environmental protection in its entire supply chain
    • Sets energy, fuel and paper consumption targets annually and tracks them monthly

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FXS has a 7-point Environmental Policy signed off by its managing director, which details how it will work as ‘an eco-friendly company’ to protect the environment and prevent pollution, with full participation of its employees.

In 2003, FXS implemented an Environmental Management System (EMS) in its offices and local operations and obtained ISO 14001 from the Japan Audit and Certification Organization (JACO) the same year. Annual targets on energy, fuel and paper consumption are set by top management and communicated to respective departments. Monthly performances are tracked and announced at prominent locations around the offices and functions that require improvements are reviewed during the monthly CSR meeting attended by a team of senior management.

To inculcate environmental awareness and behaviour in its supply chain, FXS provides its external contractors, service providers and business partners with a set of 15 EMS guidelines which cover the use and disposal of chemical substances, plastic and paper and the maintenance of vehicles to avoid harm to the environment. Suppliers must acknowledge the guidelines before entering the work agreement.

FXS’ energy consumption mainly derives from customers’ use of its equipment. Special efforts is therefore made to develop energy-efficient devices and products. Since 2001, all Fuji Xerox products have won the “Japan Energy Conservation Awards”. Consumer education on environmental sustainability is also an important aspect of FXS’ environmental protection initiative. For instance, its sales professionals teach customers how to optimise the environmentally friendly features of the company’s equipment. FXS also provides its customers with green collection boxes to facilitate the collection and recycling process.

FXS has long been a supplier of paper products from sustainable or recycled sources. Since March 2010, Fuji Xerox Singapore’s document supplies department has obtained certification from the Forest Stewardship Council (FSC) Chain of Custody for its sustainable compliance throughout the paper supply operation. FXS’ CEO Mr Bert Wong, recalled the initial obstacle he faced in the aspect of incorporating CSR into business strategy:
“I’m always asked what is the return for being environmentally and socially responsible in measureable terms. For example, recycled paper is more expensive for both customers and the company. But I insisted we start marketing environmental friendly paper in the 1990s. Today, this move as an early adopter of environmental stewardship has helped to position FXS as a supplier of choice, and thereby contributing to the enhancement of our competitive advantage.”

As for its recycling and reuse efforts, all FXS’ used cartridges, printers and copiers are sent to the Fuji Xerox International Resource Recycling centre in Thailand. This eco-manufacturing plant is one of the key elements of Fuji Xerox Group’s Zero Landfill initiative. Used Fuji Xerox products are collected from nine countries in the Asia-Pacific region, disassembled and sorted into 74 categories including steel, aluminium, lenses, glass and copper. After strict quality inspection, some parts including toner and drum cartridges are returned to regional operations for reuse. The rest of the material is sent to Fuji Xerox Group’s recycling partners.

For more about FXS’ environmental initiative, please go to http://fujixerox.com.sg/company/sustainability

  • Labour practices
    • Adopts the Tripartite Guidelines on Fair Employment Practices
    • Internationally recognised certification for occupational health and safety management systems and bizSAFE Level 5 (Star) certification
    • Regular employee engagement sessions

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FXS adopts the Tripartite Guidelines on Fair Employment Practices in Singapore, adhering to the five principles set out by the guidelines. FXS provides training for its staff in both technical or functional skills as well as soft skills. Company-wide courses in grievance handling, counselling and non-discrimination were also organised, which all managers are required attend. In 2011, its employees spend an average of 33 hours in training.

FXS has obtained the BS OHSAS 18001:2007 and the SS 506 Part1: 2009 – internationally recognised certification for occupational health and safety management systems, as well as the bizSAFE Level 5 (Star), a local certification standard, in June 2012.

Employee engagement sessions are organised regularly and customised to the needs of the audience. For example, at the bi-monthly Manager Communication session, the Senior Managing Director addresses issues pertaining to leadership areas, while the Quarterly MD Communication Sessions touches on specific issues which are relevant to the members of the respective Departments or Business Units. FXS has been holding regularly internal employee surveys in the past decade, and conducted its first external Employee Engagement and Satisfaction Survey in 2012, scoring 69% in employee effectiveness, which is higher than the national average. In addition, recognising the age diversity of its workforce, a Youth Orchestrated Growth initiative was also set up to engage its younger ‘Gen Y’ employees and facilitate dialogue and communication them and various age groups within the company.

  • Consumer accountability
    • Product technology safeguarded against possible hazards
    • Published commitment on customer feedback channels

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Conducting business with integrity so as to build and retain the trust of customers is an important pillar of FXS’ business ethos. Mr Wong began his career with Fuji Xerox some 30 years ago in the sales department and understood very well the importance of providing products that are not just environmentally-friendly but also safe for customers. As he recalled:
“When I joined Fuji Xerox our machines were still using drums and toner powder which was very smelly and dusty. I was in sales. Many customers asked if the toner was safe. Would continued exposure to the chemical damage their health? I engaged with them one by one, assuring them our product was safe. We did not use the term “CSR” then. But deep down I was asking myself if we were being responsible; was the toner we were using scientifically proven not to be a health hazard. I trusted the company’s integrity, and twenty years later I know the toner was safe.

But that early challenge from customers made a deep impression on me on the importance of everyone in the company, not just the top management, being knowledgeable about the health and environmental safety of our products.”

The company is committed to deliver products that do not present any danger to its customers’ health and physical safety. To improve customer safety, its parent company Fuji Xerox developed new product technology to safeguard against possible hazards. Fuji Xerox Singapore has obtained the ISO 9001 standard on quality management and the Singapore Quality Class awarded by SPRING Singapore (http://www.spring.gov.sg).

Customer satisfaction is also important for a service provider like FXS. Customer feedback is collected from its website, hotline, surveys, onsite visits, emails, fax and letters. FXS has a published commitment of acknowledging complaints within two working days and resolving issues raised within five working days and an internal system which tracks all feedback received, its response and resolution time, and the overall performance in responding to every case.

  • Community involvement and development
    • Youth-related initiatives with partner organisations

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FXS’ community initiative focusses on the youth as it wants to build the society and the environment for the next generation. The company also maximises its commitment to community development through engaging its employees. One of the notable community partnership of FXS is its participation in the National Environment Agency’s Corporate & School Partnership (CASP) programme, which pairs corporate entities to work with schools on environmental projects. Students from ITE College West have benefitted from the programme through exposure to FXS green technologies and solutions.

  • Governance and transparency
    • UN Global Compact signatory since 2002
    • Singapore operations produced its own sustainability report in 2012

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Fuji Xerox has been a UN Global Compact signatory since 2002 on bases its own CSR values on the 10 principles of UNGC. In 2008, Fuji Xerox became a signatory to the Global Compact CEO Statement. This commitment is expanded in 2010 when Fuji Xerox was invited to participate in Global Compact LEAD, which to-date comprises 56 leading sustainability companies worldwide. In the same year, Fuji Xerox was invited to be a member of the UN Global Compact LEAD Steering Committee, which currently comprises 12 companies, with Fuji Xerox being the Japanese representative.

In Singapore, FXS produced its first standalone sustainability report in 2012 using the GRI framework.

What were the benefits that the company has reaped in its CSR journey?

The Environment

  • Since implementing its Environmental Management Programmme in 2003:
    • 40% reduction in carbon dioxide (CO2) emission despite of a 38% increase in revenue;
    • 23% reduction in fuel consumption despite a 105% growth in equipment sold;
    • 48% reduction in electricity usage;
    • 42.9% reduction in office paper usage;
    • 38 times increase in sale of FSC certified/recycled papers;
    • 2 times increase in sale of eco-conscious equipment;
    • Collected and recycled 91,646 units of used toner cartridges & customer replaceable unit (CRU) in 2012;
    • Over 250 establishments attended "Go Green" workshops on how to implement eco-practices internally;

The company has been placing emphasis on educating users and younger generation on Green IT, CSR and environmental best practices through partnerships with leading industry bodies and education institutions. It has collaborated with ITEs in Corporate and School Partnership Programme to impart green values to the youth.

Customer satisfaction
In 2011 and 2012, Fuji Xerox Singapore was named “Best in Customer Satisfaction” in the Market Probe competitive benchmark survey. Conducted in Singapore, this survey collated responses from 606 purchasing managers from government, finance, manufacturing, education, construction, retail, hospitality and the legal industry.

[Case study as at Nov 2013. Information extracted from ‘Enabling CSR Journeys – Knowledge Sharing for Sustainability’ by Singapore Compact for CSR and Fuji Xerox, 2012, Fuji Xerox Singapore’s Sustainability Report 2012, as well as Fuij Xerox (http://www.fujixerox.com/eng/)and Fuji Xerox Singapore(http://fujixerox.com.sg)’s websites]

Which Direction

Singapore Compact