Top > Corporate Social Responsibility > [Activity Report] Management > Responsibility to Shareholders and Investors
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- Responsibility to Shareholders and Investors
Communication with Shareholders and Investors
Benesse Holdings proactively discloses information to shareholders and investors. It provides a full complement of IR disclosure tools from the annual report to shareholder newsletters and the company website. The Company also places great importance on mutual communication in its relationship with shareholders and investors. Therefore, the Company promotes a variety of IR activities which permit face-to-face discussions.
These IR activities have received favorable evaluations from the investment community. In the 13th Nikkei Annual Report Awards, the FY2010 annual report received a special award — the ninth consecutive year that Benesse Holdings has received at least some mention in the awards rankings. Furthermore, the Company received a Gold Award in the education and services category at the ARC Awards, a prominent international annual report competition. In addition, Benesse Holdings’ website was ranked seventh among all listed Japanese companies in Nikko Investor Relations Co., Ltd.’s ranking, and received a first-place ranking for the Services Industry.
Annual Report 2010
Investor Relations Top Page
http://www.benesse-hd.co.jp/en/ir/ 
Benesse Holdings Receives Disclosure Award
Benesse Holdings won a Disclosure Award for publicly listed companies on the Tokyo Stock Exchange for fiscal 2010. Sponsored by Tokyo Stock Exchange Group, Inc., the award is bestowed once a year on listed companies recognized for their proactive disclosure, including timely and appropriate disclosure of corporate information in an easy-to-understand form for investors. The award is intended to encourage enhanced disclosure by listed companies. This was the Company’s second award in five years.
Benesse Holdings won high marks for detailed information in its earnings reports and annual report and on its website, as well as for paying attention to readability and for the many video clips available to users.
General Shareholders’ Meeting
Ordinary General Shareholders’ Meeting for the 57th Period (held on June 25, 2011)
In an effort to promote better communication with shareholders, in June 2006 the Company began holding its general shareholders’ meeting on a holiday. The Company avoids holding the meeting on days when most Japanese companies hold their meetings, so that many shareholders can attend. The 57th Ordinary General Shareholders’ Meeting held on June 25, 2011 was attended by a record 499 people. In addition to a report from the Company and voting on matters for resolution, shareholders actively expressed their views and asked questions.
Those shareholders who are not able to attend a meeting can access a video of the meeting on the day it is held on the Company website, and a summary of the question-and-answer session between management and shareholders is available the week after the meeting.
SRI Inclusion
Benesse Holdings has been included in major SRI indices and funds worldwide, reflecting its strong reputation in areas such as corporate governance, compliance systems and CSR initiatives.
In 2010, Benesse was selected for inclusion in DJSI World, one of the world’s best-known SRI indexes, for a sixth consecutive year. DJSI World selected 318 outstanding companies in terms of sustainability (30 of them Japanese) out of the 2,500 major international companies considered for inclusion.
Similarly, rating organization SAM of Switzerland selected Benesse as a SAM Sector Leader in the global consumer services sector for a fourth year running.
Status of Inclusion in SRI Indexes and Funds
| Name of SRI or Fund | Rating Organization | Basis of Evaluation |
|---|---|---|
Dow Jones Sustainability Indexes |
SAM (Switzerland) | Capable of sustainable growth and a leader in its industry |
FTSE4Good |
EIRIS (United Kingdom) | Governance, fairness, human rights, etc. |
| Global Challenges Index | Oekom Research (Germany) Hanover Stock Exchange |
Selected as one of the 50 most sustainable companies worldwide; rated highly for its expansive services in the nursing care business |
| Morningstar Socially Responsible Investment Index | Center for Public Resources Development | Compliance, corporate governance, market responsiveness, and initiatives for equal opportunities, people with disabilities, etc. |
| ASN Investments Funds | ASN Bank Selection Committee (Netherlands) | Environmental stance, human rights, etc. |
| Eco Partners (Green Wing Fund) | Mitsubishi UFJ Research and Consulting | Efforts to address environmental issues |
| Sumishin SRI Japan Open (Good Company Fund) | The Japan Research Institute | Active stance towards CSR |
| Sumishin Japan Stock SRI Fund | The Japan Research Institute | CSR activities that contribute to sustainable growth |
| Sompo Japan Eco Open | NKSJ Risk Management | Strong environmental protection and efforts to address environmental issues |
| Sompo Japan Green Open-Bunanomori | NKSJ Risk Management | Proactive measures to tackle environmental issues |
| Daiwa SRI Fund | Integrex | Corporate governance and compliance stance |
| Mitsui Trust Socially Responsible Investment Fund (SRI Plan) | Integrex | CSR-aware activities |
| Mitsubishi UFJ SRI Fund (Family Friendly Fund) | The Good Bankers | Efforts to balance work and private life, offer diverse, flexible working conditions and support family life |
*Prepared on the basis of the prospectus of each fund, fund management reports and letters from companies to Benesse
Returning Profits to Shareholders
Benesse Holdings’ capital policies, including measures to return value to shareholders, are viewed as an extremely important priority. The aim of the capital policies is to increase corporate value.
In fiscal 2010, Benesse Holdings paid a total annual dividend of ¥95 per share — equivalent to a dividend payout ratio of 45.6%. The Company has a clear target for the ratio of 35% or more. Benesse Holdings plans to keep dividends unchanged at ¥95 per share for fiscal 2011. This would represent a consolidated dividend payout ratio of 52.1%.
The Company has long had a flexible stance regarding the acquisition of treasury stock. Benesse Holdings’ treasury stock holdings rose to 7.58 million shares (¥26,067 million) as of March 31, 2011. This is equivalent to 7.1% of total shares issued. We have decided to set a 5% target level for treasury stock versus issued shares; in principle, any excess shares above this level will be canceled each term.
Cash Dividends / Dividend Payout Ratio
