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
A.P. Honda Co., Ltd.
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
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
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 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
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
149 Rodrangkhao Road, Samrong-Tai Sub-district,
Phrapradaeng District, Samutprakan 10130
Tel: +66(0) 2757 6111 Fax: +66(0) 2757 6222
E-mail : chutimontj@aphonda.co.th
“Associate” be used by Honda in the same meaning of “employee”
010
We are A.P. Honda
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
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
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
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
015
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 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 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
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
019
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 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
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
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 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
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.
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
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
“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
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
027
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
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
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
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
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
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
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.
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
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.
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
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
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
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
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
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.
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
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
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
Stakeholders of
A.P. Honda
Communication
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
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
Stakeholders of
A.P. Honda
Communication
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
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
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
•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
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
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
045
Environmental Performance
9. Environmental Performance
046
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
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
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
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
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
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
Information about wastes or discarded materials
and management methods as of 2014
053
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
3
0.68
4
Oil or chemical contaminated
materials
Used batteries
0.04
5
Used light bulbs
0.05
6
Oil contaminated water
0
7
Used engine oil
0
Used as alternative fuel
8
Used thinner
0
Used as alternative fuel
9
Used engine oil
1.31
Other recycling methods
10 Used thinner
1.10
RAT Co., Ltd.
11
Used motorbike batteries
0.72
RAT Co., Ltd.
12
Waste water sludge
0.12
RAT Co., Ltd.
Ruam S. Recycle 2000
Limited Partnership
Limited Partnership
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
15
Plastic pieces
3.93
16
Paper pieces
17.87
17
Used motorbike tires
3.50
Sanitary landfill for non-haz- Better World Green PCL
ardous waste only
054
Social Performance
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”.
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.
10. Social Performance
057
Social Performance
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
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
059
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
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
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
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
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%
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
New
Associates
Samrong office
2012
Total
Number of the relinquished associates categorized by genders
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
Total
063
Social Performance
Number of the relinquished associates categorized by ages
Year
2012
2013
2014
Range of Age
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%
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%
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
Number
Samrong office
2012
Total
064
Social Performance
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
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
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
Male
Female
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
Male
Female
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.
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.
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
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
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
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
components
2014
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.
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.
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
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
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
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
Wheel locking system to prevent the motorcycles
from slipping when parked on steep paths
AT
MC
ABS : Anti-Lock Brake system
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
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
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
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
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
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
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
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
083
Social Performance
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
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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).
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.
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
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
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
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
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.
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
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
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
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
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,
Youths’ competency
development project
096
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.
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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 on :
1.1
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

5 - Honda

Transcription

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