The HOPE Group provides specialized services to local governments with the aim of realizing the corporate group philosophy of “Providing new value to citizens through local governments, and promoting growth of the company and its people.”

In addition to tax revenues, local governments will create their own revenue sources and propose ways to cut costs, and use the revenue sources they have secured to improve services for residents. The Group's business objective is to enable the provision of new value to all people living throughout Japan and growing together.

Based on this philosophy, our Group will build good relationships with stakeholders so that it can continuously create social and economic value from a long-term perspective, aim to improve the corporate group value, and practice management that emphasizes sustainability.

Going forward, our policy is to further enhance specific initiatives that emphasize sustainability (including enhancing governance and risk management systems). In this context, the Group attaches particular importance to human capital, and believes that aggressive investment, including human resource development, for the purpose of enhancing human capital will lead to an increase in the added value of the Group's services, which in turn will lead to the realization of the corporate group philosophy and the enhancement of corporate value.

Governance

The group currently does not distinguish governance for monitoring and managing sustainability-related risks and opportunities from our corporate governance system, and treats them similarly. However, we will continuously review our governance structure from the perspective of promoting sustainability.

Please refer to this page for an overview of the Group's corporate governance system.
https://www.zaigenkakuho.com/en/ir/governance/

Initiatives to Share Corporate and Organizational Culture

The HOPE Group believes that it is important to create opportunities to share a common understanding of the corporate group philosophy, business objectives, and code of conduct with the employees, and is engaged in a variety of initiatives. We place importance on deepening mutual trust through these initiatives and creating opportunities to share our organizational culture. In addition, we believe that the provision of human resource development programs and work experience within the Group promote the healthy growth motivation of each employee.
We believe that a variety of initiatives, including the following, will lead to the creation and maintenance of a corporate culture and make it possible to develop human resources to realize our corporate philosophy. We believe that it is important to engage in these initiatives on a regular basis with sound discussions respecting the individuality of each and every employee.

Exchange Meeting with Management (NANAKAI)

Since 2018, the Company has been holding “NANAKAI“ at least once a month, which provides an opportunity to have a dialogue for the management team (1 person from the CEO, COO and CFO) and randomly picked 6 employees, 7 in total. The content of the dialogue is shared with all employees in the form of minutes.

Use of Weekly Reports
(Monthly Awards)

Since 2009, the Group has been conducting a weekly report every weekend in which all employees describe their weekly efforts as a business report. The Group also holds monthly awards to commend employees who have made outstanding outputs in this weekly report. In principle, all employees can view the reports and anyone can comment on it. This makes it possible for employees to obtain opinions and thoughts on their initiatives from other departments. The report serves as an output for each employee and plays an important role as a means of two-way communication.

House Journal

We publish a house journal twice a year. Based on the current situation in the company, the project team discusses what topics are appropriate and what approach should be taken to communicate them within the company, and prepares and publishes the report.

Initiatives for Human Resource Development

In addition to the above initiatives to foster a corporate culture, the we have established programs and systems related to human resource development, and strive to provide a wide range of training opportunities so that employees can demonstrate their individuality and play an active role in the environment of their choice.

Development of the Mid-level Employees (MIDOTSUKU)

For strengthening organizational capabilities and future business growth, we believe it is essential to enhance the management skills of middle managers who have a strong influence on their surroundings. Therefore, since 2022, we have implemented a development program called "NAKAKAI" for section managers with subordinates. In 2023, we added new content and renewed it as a middle management development program called "MIDOTSUKU.
In the "MIDOTSUKU" program, middle managers are developed according to the basic policy established by the HR department and the executive team. The program includes mindset formation, training sessions, management case studies, evaluations, and discussions on current challenges. As middle managers often have fewer peers to consult, this program helps form a community among middle managers, providing a space to discuss management concerns and enhancing psychological safety.
In addition to middle managers, some employees join this program voluntarily and have successfully been promoted to management positions. In the "Medium-Term Management Plan" announced on May 15, 2024, the construction of a well-rounded middle management layer is identified as a top priority under the "Human and Organizational Policy." Going forward, we plan to enhance the program by including specialized training with external instructors to support future growth.

Next Generation Management Development Program
（NEXT GENERATION）

In order to develop the next generation of managers, we provide opportunities to learn management directly from top management through various events over the year (such as participation as an observer in management meetings). Two or three people are elected each year. Participants set their own goals to improve their knowledge and perspectives on management, and aim to achieve these goals over the course of the year through activities such as deep diving into subject materials, case studies, and advice from the CEO. The purpose of this program is to improve the viewpoint of employees, including skills and mindset, as human resource that will be involved in management in the future.

Internal Training Program
（Hope Discovery Channel）

We have study sessions in which all employees, including part-timers, can participate. Lectures are given on a wide range of topics by people with a variety of backgrounds, both inside and outside the company. For example, lectures are given on such topics as forming a mindset as a business person, logical thinking, and improving sales skills, incorporating life experiences.

Leader Election System
(Election of Branch Managers)

This is an initiative in the advertising business. Approximately 100 employees are engaged in the advertising business. As our sales system, the country is divided into seven areas, and sales activities are carried out by business division organizations (branch offices) in each area. We have introduced a system under which employees who wish to become branch managers for the new fiscal year can stand as candidates and be elected by a vote of employees engaged in the advertising business. By personally electing the leader of the department to which they belong, employees can have a strong sense of ownership of their branch office system. At the same time, as next-generation leaders, it would be an opportunity for the employees to face and think about their career development in the Group through their candidacy.

Job Rotation

Once a year, we ask all employees within the Group up to their third choice of department (type of job) in which they wish to work, including the department to which they belong, and consider their assignment for the next fiscal year. The main objective is to maximize performance through commitment to work by making assignment decisions based on individual intentions. Approximately 80% of employees are assigned to departments up to their third choice every year.

Having opportunities to think about one's own career and being able to envision various careers result in an increase of motivation, which leads to the promotion of one’s growth.

Systems to Realize Flexible Working Styles

In order to realize flexible working styles, the Group has established various systems as follows.

Promotion of Teleworking

As a result of preventive measures against COVID-19, teleworking has spread throughout the Group. We enable teleworking by providing laptops and using SaaS services. By providing a flexible working environment regardless of one’s location, we can also secure human resources. For example, there has been an increase in the number of cases in which an employee continues to work for the Group even when the employee has moved away from the office due to family reasons.

Shorter Working Hours

Employees can have shorter working hours if it is desired due to family circumstances such as childcare or nursing care. Some employees actually have shorter working hours to take care of their children.

Childcare Support

Non-statutory leave (paid leave tickets) are provided according to each stage, including 40 hours of paid leave tickets during pregnancy, and separately distributed paid leave tickets according to the age of the child during childcare. Parents and custodians can use the ticket during their childcare period.

Diversity (Initiatives to Promote Women’s Participation and Advancement)

For the fiscal year ended March 2024, we announced the following targets and action plans for the promotion of women’s participation and advancement in the workplace.

HOPE Group's Challenges

At the time the action plan was drafted, there were no major differences in the ratio of men to women among employees, the ratio of men to women in managerial positions, or the competitive ratio of men to women in hiring. However, with the average age of 33.6 years (as of the end of March 2024),, the number of employees facing life events such as childbirth and childcare has increased compared with before. Thus, there is a possibility that the ratio of men to women among employees and managers will be higher, and the difference in the average length of service between men and women will increase.

Goals and Metrics

Reduce anxiety about balancing family and work, and maintain the ratio of women among employees and managers (section managers and above) at 40-60%.

Action Plans

a. Development of systems for diverse working styles
In order to support a balance between work and life events such as childbirth, childcare, and relocation due to marriage, we will implement a variety of work styles, including shorter working hours and teleworking, as well as improve and streamline systems.

b. Dissemination of systems and results
In order to eliminate concerns employees may have since maternity and childcare support systems and the use of these systems are not well known, we will appropriately revise the systems, build an environment in which it is easy to receive support, and promote the dissemination of the systems.

Results

In line with our action plan, we continue to improve systems for diverse working styles and revise policies related to childbirth and childcare, ensuring thorough internal communication. For the fiscal year ending March 2024, the percentage of female employees was 52.2%, meeting our target. Although the percentage of female managers (section manager level and above) was slightly below the target at 39.3%, the overall number of employees and managers increased. Despite the percentage decrease, the number of female managers increased by two from the previous fiscal year.

Results And Performance Data

State of Employee Motivation

The Group introduced the Motivation Cloud (Note) throughout the Company in July 2019 as an index to grasp the state of the organization. According to the latest survey conducted on November 8, 2023, the organization score for the entire Group is 69.0, maintaining AAA for the fourth consecutive time.

B/50.0 is the national average, and AAA is the highest of the 11 grades from AAA to DD. The score of 69.0 is positioned in the top 2.87 percentile of all surveyed companies, and is a good organization score for the Group as a whole.

Topics

Awarded Best Motivation Company Award 2024

The group ranked 10th in the "Best Motivation Company Award 2024" in the Mid-sized and Growing Venture Companies category (under 2,000 employees). This award, given by Link and Motivation Inc., honors the top 10 companies with the highest "Engagement Scores," which quantify mutual understanding and affection between the company and its employees based on an employee engagement survey conducted in 2023.

(Note) “Motivation Cloud“ is a cloud service provided by Link and Motivation Inc. that evaluates the state of organizations based on one of the largest databases in Japan, which has more than 4.03 million employees in 11,360 companies, and supports the improvement of employee engagement.

Personnel Data

Our personnel data as of the end of March 2024, for regular employees is as follows. The data is based on our initiatives for Diversity (Initiatives to Promote Women’s Participation and Advancement), and the status of employee motivation as detailed in "Results and Achievements Data".

Health Care System

The Group has taken the following measures to improve its internal environment. Through these efforts, we are working to ensure the health and safety of our employees and to maintain and improve the working environment.

Free Flu Vaccination
(For employees, voluntary)

We have a system where employees can get one flu vaccination for free every autumn.

Spouse Health Checkup

As part of our welfare program, we offer a spouse health checkup (subject to certain conditions).

PC Log Monitoring System

In addition to the attendance management system, a log monitoring tool has been installed on each employee's PC so that it is possible to ascertain whether work occurs during hours or holidays for which permission has not been obtained in advance, and whether there are any discrepancies with the attendance management system.

Safety System

Development of BCP
(Business Continuity Plan)

We have formulated the BCP in light of the business continuity of the Group. To ensure the safety of our employees, we have established and prepared a system of emergency instructions and orders. For example, in the event of a high-risk disaster in a particular region, such as a typhoon or torrential rain, we issue an announcement urging employees to take precautionary measures.
We also encourage employees to register with the Disaster Emergency Message Dial, and secure multiple means of communication in the event that normal means of communication are disrupted in an emergency.

Access Control System

Access control systems are used to prevent suspicious individuals from entering or leaving the office and to prevent information leaks.

Initiatives as a Registered, Certified, and Supporting Company

Fukuoka Eco Business

Fukuoka Eco Business is a business (offices, factories, schools, stores, hospitals, etc.) located in Fukuoka Prefecture that declares its commitment to conserving energy and resources by reducing the use of electricity and automobile fuel (gasoline).
As part of our Group-wide efforts related to this declaration, we have established a company-wide organization for energy and resource conservation, including the reduction of electricity consumption. We are working to continuously raise awareness through such measures as room temperature management, the reduction of printed materials by promoting digitalization, and the dissemination of other resource-saving methods.

Declaration as a Company Supporting Childcare

Declaration as a Company Supporting Childcare is a declaration by the top management of a company or business establishment that they will make specific efforts to support employees in balancing work and childcare.
We have established the following systems as examples of initiatives related to this declaration.

• a. Educational insurance allowance
  The company bears 20% of the educational insurance premium.
• b. Diaper allowance
  Monthly in-kind supply of diapers for children 3 years old or younger.
• c. Christmas present allowance
  Payment of Christmas present money to employees with children 5 years old or younger.
• d. Childcare support
  Paid leave tickets are provided according to each stage, including 40 hours of paid leave tickets during pregnancy, and separately distributed paid leave tickets according to the age of the child during childcare. Parents and custodians can use the ticket during their childcare period.
• e. Family Birthday
  Employees can take a day off on their child's birthday and a half-day off on their spouse's birthday.

“I-na“ Fukuoka Children Week

“I-na“ Fukuoka Children Week is a campaign to engage in activities that can be done for children in various places, including companies (workplaces), communities, and homes, on at least one of the first seven days of each month.

JICHITAI AD, INC., our Group company, is one of the supporting companies. As part of its operations, JICHITAI AD, INC. has produced a booklet on childcare support. In response to the needs of local governments throughout Japan, the company has collaborated with local governments to produce and publish information booklets on childcare support, which are useful for local governments to provide information to residents. Incorporating advertisements also contributes to the reduction of local government expenditures.

Risk Management

The Group has established crisis management regulations for the purpose of avoiding management risks associated with the execution of business in advance, and has developed and is operating a risk management system to enable prompt responses and management. The Board of Directors and the Management Committee discuss and consider business risks surrounding the Group as appropriate. In addition, we have established a system in which we can receive proper advice and guidance as appropriate by entering into advisory contracts or outsourcing contracts with lawyers, certified public accountants, and labor and social security attorneys.

Specifically, as a compliance system for directors and employees, the Group has established the “Compliance Committee“ for the purpose of developing the Company's business by appropriately developing and operating an effective system to comply with laws and regulations concerning management activities and other matters. In the future, the Group plans to replace the Compliance Committee with the “Risk and Compliance Committee (tentative name)“ with a view to discussing and examining measures to address business risks surrounding the Group. Prior to the establishment of the Committee, the “Risk and Compliance Office“ was established directly under the Director and CFO, and the Group is engaged in activities toward the establishment and operation of the Committee. In addition, we are preparing to establish the “Investment Advisory Committee (tentative name)“, which will evaluate our new business development and commercialization of services through M&A, etc. from multiple perspectives, including risk analysis, and provide opinions to the Board of Directors.

The content of this page is in accordance with the content of the Annual Securities Report filed on June 28, 2024.
Please refer to the following for our latest Annual Securities Report.
https://www.zaigenkakuho.com/ir/securities/