Supply chain management
Sangetsu Group CSR Procurement Policy
1. Fair and Equal Treatment
(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.
(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.
(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.
(4) Our directors and employees do not receive any benefit or convenience regarding duties of procurement, etc.
2. Observance of Laws, Regulations and Ethics
(1) We comply with the relevant laws and regulations concerning procurement transactions.
(2) Business partners’ confidential information acquired in the course of procurement transactions is kept secret, on the basis of contracts.
(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
(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.
(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 potential 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, design reviews and complaint analyses during the product development process, as well as acceptance testing for some products. For newly adopted products, we are striving to identify quality risks and thoroughly verifying them in advance, and we are also conducting on-site verifications with test marketing for some products.
Conducting CSR Surveys and CSR Inspection for Suppliers
We have been conducting surveys for suppliers with respect to compliance
with the CSR Guidelines since 2017. This survey evaluates each company
in relation to CSR activities, including compliance with laws and social norms,
ensuring that corporate activities are fair and equitable, and concern for
human rights, occupational health and safety issues, and the environment,
as well as other matters. By providing feedback on the survey results to
suppliers and encouraging them to make improvements, we are focusing on
enhancing awareness of CSR-related procurement and social sustainability activities
throughout the supply chain as a whole. From FY2023, we switched to a
format based on the “CSR Procurement Self-Assessment Questionnaire”
provided by the United Nations Global Compact Network Japan.
This has improved on fluctuations in evaluations that had been an issue
when we used questionnaires that we had developed ourselves in the past,
and reduced the burden on suppliers, who need to respond to various different
questionnaires from different suppliers. Sangetsu also conducts on-site CSR
inspections of its suppliers to confirm and offer each of them advice on a variety
of initiatives relating to the environment, workplace, human rights, and
compliance, as well as to share information and engage in discussions on how
to better support these initiatives. In FY2023 we visited six suppliers to conduct on-site inspections and review their actual initiatives.
FY2023 Survey Results (239 companies answered)
■ Priority Items
・Corporate Governance related to CSR
・Environment
・Quality and safety
・Supply chain
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