Mutual Harmony and Benefit with our Clients
Our procurement activities are in accordance with Procurement Policy, which is based on principles of fairness, coexistence, co-prosperity and mutual trust and good partnership with suppliers.
Procurement Policy
- Strict Compliance
- Continuous Improvements of Quality, Cost and Delivery
- Fair Suppliers certification
- Reducing environmental impact
- Conflict-free minerals
Suppliers Certification System
We build our CSR in the supply chain through Supplier Certification System to select suppliers in a fair manner. Specifically, we have incorporated CSR-related items in our supplier certification standards and have established Supplier Certification Committee to assess suppliers at both cases of certifying new suppliers and renewed suppliers under ensuring fairness and transparency.
Every year, we also conduct a regular evaluation and review of our key suppliers.
The evaluation focuses on quality, technology, price, delivery and service. If the result of the regular evaluation is less than 60 points, we support the supplier to make improvements. In FY2023, we conducted regular evaluations on 68 companies, and all 68 companies passed.
Supplier Certification Standards
- CSR: Codes of conduct / environmental management / risk management
- QCD: Quality management system / price / delivery
- Securing of Soundness in Management
- Matching of company strategy and direction
Compliance management subservience
We have established an education program and are educating employees to ensure that we adhere to the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors and other relevant laws and regulations concerning procurement.
Responsible Procurement
We have Supplier Certification System including CSR assessment and its procedure manual to realize the society of honesty, fairness, coexistence, co-prosperity, impartial manner, and respects for people. Moreover, our procurement activities shall be in accordance with Procurement Management rules.
Conflict-free minerals
We recognize conflict minerals as being a critical international issue that supports the financing of organizations engaged in human rights violations and/or injustices committed in the Democratic Republic of Congo and adjoining countries.
We strongly request our suppliers for their cooperation in prohibiting the use of any conflict minerals.
Responsible Minerals Procurement
We promote initiatives toward the non-use of tantalum, tin, tungsten, and gold and other minerals such as cobalt that are originated in conflict-affected areas and high-risk areas（CAHRAs）where instability of political situation, collapse of social infrastructure, and/or violence have been widespread (hereinafter collectively referred to as the “Region”) and that are involved in or affecting/affected by conflicts and CSR risks.
The conflicts and CSR risks refer to:- human rights violations associated with mining, transporting, and dealing of minerals (e.g. forced labor, child labor, human trafficking, abuses, and other inhumane acts);
- direct or indirect support to armed groups;
- illegal activities conducted by public or private security forces (e.g. illegal imposition of taxes and extortion of money in their jurisdictions); and
- bribery, false statement about where minerals are sourced from, money laundering, and unpaid taxes, charges, and mining royalties.
- Target risks are based on OECD Annex II
Based on this policy, we will take the following initiatives.
- We will appropriately conduct surveys of smelters in the supply chain using questionnaires for each mineral issued by internationally recognized organizations that promote responsible mineral procurement or by appropriate means.
- Through an internationally reputable mineral audit program, we promote sourcing from smelters that have been certified as not involved in conflict and CSR risks in the target region.
- Some minerals are obtained through legitimate business activities in the target areas, so we will work to ensure that we do not interfere with their use.
- We request our suppliers to investigate minerals based on our policy and to engage in responsible mineral procurement for the entire supply chain.
We are following social trend in industry and suchlike, and any activity shall be in accordance with our Conflict Minerals Policy.