Supply chain management
Sangetsu Group CSR Procurement Policy
1. Fair and Equal Treatment
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(1) We sincerely conduct business activities with all business partners on a basis of equality and fairness at all times, regardless of location, in accordance with the relevant laws, regulations, and contracts.
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(2) Any business activities which are unreasonably disadvantageous to business partners through the abuse of a superior bargaining position is prohibited, and we provide all business partners with the opportunity of just and fair competition.
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(3) Regarding the selection of business partners, we consider their approach to global environmental conservation, the respect of human rights of employees of business partners, labor related activities, as well as the quality, price, delivery timing, technological capability, strength in proposals, supply capability, stability of management, etc., in the short, medium and long term. If any misconducts are confirmed and are not rectified in a certain period, appropriate actions including termination of transaction will be taken.
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(4) Our directors and employees do not receive any benefit or convenience regarding duties of procurement, etc.
2. Observance of Laws, Regulations and Ethics
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(1) We comply with the relevant laws and regulations concerning procurement transactions.
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(2) Business partners’ confidential information acquired in the course of procurement transactions is kept secret, on the basis of contracts.
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(3) Regarding the procurement transactions, we prohibit transactions which violate the rights of third parties (e.g., intellectual property rights, etc.).
3. Responsibility to Society
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(1) We strive to improve the quality of products and services and ensure safety through sincere communication with all business partners based on mutual understanding and a relationship of trust.
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(2) Regarding the selection and purchasing of procured products concerning our business activities, we conduct our activities to fulfill our corporate social responsibility, including the conservation of resources and the environment, respect of human rights, consideration for safety, reduction of overtime to reduce excessive labor, realization of salary treatment above the minimum wage that ensure adequate standard of living, securing a safe, healthy and pleasant working environment, etc, on the basis of CSR procurement (including green procurement), to realize a sustainable society. Therefore, we also request our business partners to cooperate in such policy, in accordance with “Sangetsu Group CSR Guidelines for Business Partners.
Sangetsu Group CSR Guidelines for Business Partners
Stability of quality
Environmental test chamber
Stability of quality is one of our materialities. We believe that the efforts we make to help reduce product complaints and raise awareness for quality improvements will lead to higher levels of customer satisfaction and allow us to develop a sustainable supply chain. For quality control, we assess the situation of our suppliers in a comprehensive manner from a range of different perspectives, and encourage them to roll out improvements at their manufacturing plants and other facilities. We also evaluate overseas supplier plants with audits to improve the quality control level of our suppliers, both in Japan and overseas. We also have a range of in-house testing equipment for conducting sampling tests of each product, perform design reviews during the product development process, analyze claims, as well as acceptance testing for some products. In April 2025, we reorganized our quality management function under a higher-level organizational structure, thereby strengthening quality control and assurance to further enhance customer satisfaction.
Conducting CSR Surveys
Since 2017, we have administered surveys to our suppliers to assess compliance with the CSR Guidelines. We promote improvement at our suppliers by providing feedback on areas such as legal compliance and environmental considerations. We also directly visit suppliers to review and advise on sustainable initiatives, engaging in information sharing and discussions to build a highly sustainable supply chain.
Evaluation Results and Countermeasures (FY2024)
- While targets were not met for all 9 items, all 4 priority items showed improvement. This is analyzed as resulting from heightened awareness of improvement among suppliers.
- For priority support recipients selected based on evaluation results and procurement amounts, on-site CSR inspections will be conducted in FY2025, followed by feedback to drive improvement.
FY2024 Survey Results (218 companies answered)
■ Priority Items
・Corporate Governance related to CSR
・Environment
・Quality and safety
・Supply chain
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