ESG

Message of the Chairperson of CSR Committee

Sights Set on Greater Awareness of Social Responsibility

Dentsu has faced severe social opprobrium with regard to our Japan business-related labor management issues that came to light in 2016, followed in October 2017 by a guilty verdict for violation of the Labor Standards Act. I offer my deepest apologies to our stakeholders for the substantial trouble and concern we have caused.

Taking to heart the severity of the situation, we have already begun dramatic reforms of the working environment in our domestic business departments. At the same time, we recognize the Company’s CSR and compliance to be serious issues. Accordingly, in addition to our preexisting CSR Committee, in April 2017 we established the Internal Control and Compliance Committee, which reports directly to the Board of Directors. Through this committee, we will work to reinforce governance of our social responsibility in a multifaceted, ongoing manner.

Alongside our next medium-term management plan currently being formulated, we are reviewing and rushing to update our present medium-term CSR strategy. To this end, we are calling for opinions from a wide range of employees as we select priority CSR issues. In this way we hope to ensure that, in future, the Dentsu Group does a better job of fulfilling its social responsibilities through its business activities, as we enable the management team and each employee to redefine the relationship between work and society.

We are expanding the scope of our contribution to the realization of a sustainable society through a variety of activities involving the Group’s business activities and each employee’s work. Overall, that means the diverse range of competencies centered on marketing and communication.The Dentsu Group is positioning the resolution of social issues and creation of new social value as core management issues. Further, we will energetically address these issues through both our own activities, and by proposing solutions to client companies.

As you are aware, institutional investors have begun emphasizing corporate value from the medium- to long-term perspective that focuses on environmental, social and governance (ESG) aspects. Recognizing that this perspective is an important driver of corporate value, we are working to improve our ESG indicators while, at the same time, focusing with renewed vigor on the dissemination of non-financial information. I believe a management team that is keenly attuned to corporate social responsibility must take the first step in recovering stakeholders’ trust. I ask for your ongoing support in this endeavor.