Materiality Identification Process
At SmartHR Group, our mission is to solve societal issues surrounding work and create a society where everyone can choose how they contribute.
However, setting a mission is one thing—achieving it is another. Using the steps below, we’ve identified the key issues that SmartHR Group must tackle to turn this vision into reality:
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step 1
Identifying Relevant Issues
We compiled a list of over 200 social issues by referencing international benchmarks proposed by SASB, GRI, MSCI, UN (SDGs), WEF, and CSRD. From this list, we extracted issues which are material to SmartHR Group.
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step 2
Stakeholder Discussion and Assessment
Using the issues identified in Step 1, we engaged in discussions with various stakeholders, assessing their expectations for the SmartHR Group and long-term objectives.
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step 3
Identifying Material Issues
Based on the previously identified issues and stakeholder evaluations, our management team discussed their priority and alignment with our growth strategy. As a result, we compiled a list of 15 issues material to the SmartHR Group.
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step 4
Approval
The identified material issues were compiled into a Materiality Policy and submitted for consideration to the Board of Directors. After thorough review and discussions, the material issues were approved by the Board.
Relationships Between Material Issues
We analyzed the relationships between the 15 identified material issues, taking into account sustainability aspects necessary for finding more permanent solutions to social issues.
SmartHR’s Mission
Solving societal issues surrounding work and creating a society where everyone can choose how they contribute.
Sustainability for the Society
We Aim to Create
- A society where everyone can choose how they contribute
Sustainability as a SaaS Company
- Providing user experiences that enhance added value for the customer
- Ensuring stability and security in provided digital services
Sustainability as a Corporate Entity
- Building a strong foundation as a corporate entity
Sustainability for the Society We Aim to Create
A Society Where Everyone Can Choose How They Contribute
Sustainability as a Software/SaaS Company
Providing user experiences that enhance added value for the customer
Ensuring stability and security in provided digital services
Sustainability as a Corporate Entity
Our 15 Material Issues
Our 15 material issues and their corresponding social challenges are listed below. We are committed to further enhancing transparency by expanding on each Initiatives section with evaluation metrics and specific case studies in the future.
1.Equal Employment Opportunities
Creating a society where job opportunities are fair and accessible to everyone, regardless of their circumstances.
Corresponding Social Issues
Fairness, equality, labor practices, safety, human rights
Initiatives
- Improving accessibility in all of our products
- Promoting the “AIRVISA” service to streamline visa management for non-Japanese employees
2.Supportive Work Environment for All
Creating a society where everyone can work and contribute in a way they choose, supporting diverse work styles.
Corresponding Social Issues
Fairness, equality, labor practices, safety, human rights, healthcare
Initiatives
- Expanding the use of SmartHR products
- Launching "Work Experiment Lab (tentative)" initiative
- Providing learning opportunities through the "Work Learning Academy", using SmartHR Group’s expertise and talent
3.Fulfillment in Work for All
Helping to build a society where everyone can find purpose and fulfillment in their work.
Corresponding Social Issues
Community development, human resources
Initiatives
- Promoting products in the Talent Management field
- Developing internal systems for individual and organizational development
4.Improving Labor Productivity
Helping people and organizations increase productivity for a more sustainable future.
Corresponding Social Issues
Human resources
Initiatives
- Promoting products in the Labor Management and Talent Management fields
- Enhancing the usability of our Labor Management and Talent Management products
5.Improving Employee-Company Engagement
Fostering a positive, supportive relationship between employers and their employees.
Corresponding Social Issues
Labor practices, safety, human resources
Initiatives
- Promoting products in the Talent Management field
- Enhancing the usability of our Talent Management products
6.Stable, Long-Term Provision of Products and Services
Providing reliable, long-lasting products and services that support working individuals.
Corresponding Social Issues
Product development, product safety
Initiatives
- Establishing policies for stable provision of services in the long term
- Measuring and improving reliability and maintainability
7.Developing User-Friendly Products for All Users
Offering intuitive, user-friendly products accessible to all, regardless of circumstances.
Corresponding Social Issues
Product development, safety, accessibility
Initiatives
- Obtaining third-party certifications for usability and accessibility
- Developing a testing system with input from users with different accessibility requirements
- Expanding language coverage
8.Protecting Privacy
Protecting privacy and delivering secure services as stewards of sensitive employee data.
Corresponding Social Issues
Product safety, privacy, security
Initiatives
- Regularly updating our privacy policy
- Promoting privacy policy awareness
9.Ensuring Security
Ensuring robust security to withstand external threats and environmental changes.
Corresponding Social Issues
Product safety, privacy, security
Initiatives
- Obtaining third-party certifications for security
- Ensuring product security
- Ensuring internal network security
10.Building an Open Business Platform and User Community
Developing open systems that welcome diverse businesses and communities to continuously grow product value.
Corresponding Social Issues
Community development, accessibility, supply chain
Initiatives
- Expanding user communities such as PARK
- Developing the SmartHR Plus app store
- Strengthening partner sales networks
11.Building Corporate Governance that Supports Growth
Adapting corporate governance to societal changes and driving sustainable growth.
Corresponding Social Issues
Purpose, corporate governance, risk management
Initiatives
- Improving the effectiveness of Board of Directors meetings
- Establishing a sustainable corporate governance structure
12.Transparent Communication with Stakeholders
Maintaining transparent, sincere communication with stakeholders and society.
Corresponding Social Issues
Purpose, stakeholder engagement, fair disclosure
Initiatives
- Promoting transparent communication through press releases, corporate website, and other media
13.Establishing Corporate Ethics Through Company Culture
Evolving corporate culture alongside company growth and upholding strong ethical values.
Corresponding Social Issues
Corporate governance, risk management, corporate ethics
Initiatives
- Organizing internal events to promote company culture
- Implementing anti-corruption policies
14.Building a Risk Governance System
Establishing strong governance to manage and mitigate risks effectively.
Corresponding Social Issues
Risk management
Initiatives
- Developing internal control systems
- Organizing a risk management committee
15.Addressing Climate Change
Taking meaningful action on climate change as a responsible corporate citizen.
Corresponding Social Issues
Climate change, air pollution
Initiatives
- Reducing greenhouse gas emissions
