Purchasing Policy / CSR Procurement Guidelines
Purchasing Policy
Established: April 1, 2019
To provide the products and services our customers demand and to maintain our status as a company trusted by our stakeholders, the Dainichiseika Group is focusing on the CSR initiatives of our suppliers in our purchasing activities and jointly promoting CSR initiatives.
- Selection of suppliers and procurement items
- 1) Quality, safety, price, delivery, and stable supply of procurement items
- 2) Corporate efforts in technological development, after-sales service, and joint efforts in response to various survey requests
- 3) Corporate stance on CSR initiatives, management systems, and other matters, including human rights, labor environment, compliance, and environmental conservation
- Open door policy
We open our doors equally to all suppliers, both domestic and overseas.
We will continually monitor new information and sources, and actively adopt the materials the Dainichiseika Group requires. - Fairness and compliance
The Dainichiseika Group will comply with all applicable laws and regulations and undertake our purchasing activities based on the principle of fair, transparent, and free competition. - Safeguarding confidential information
We will handle and manage any information on suppliers obtained through our procurement activities in the appropriate manner. - Mutually-beneficial relationships and shared prosperity
We seek to achieve mutually-beneficial relationships and shared prosperity with our suppliers and strive to build relationships of mutual trust. - CSR partnership
We will promote CSR initiatives in partnership with our suppliers.
CSR Procurement Guidelines
Dainichiseika Group (the “Group”) engages in its corporate activities in accordance with the Basic CSR /ESG Policy and aspires to be a company that continues to be trusted by its stakeholders.
Furthermore, in order to apply its CSR initiatives to the entire supply chain, the Group selects its business partners and procurement items based on fair and just assessments through the addition of CSR initiatives such as human rights, the labor environment, environmental conservation, and compliance criteria for the selection of its business partners, in addition to conventional items such as quality, safety, performance, price, and stable supply.
In the selection of its business partners and procurement items and the continuation of transactions, the Group has set forth the items, which the Group hopes will also be undertaken by its business partners, and has established the "CSR Procurement Guidelines," as follows.
Updated: July 29th, 2022
1. Respect basic human rights; eliminate discrimination, forced labor, and child labor; and make efforts to improve the labor environment.
- 1) Respect for human rights
Respect the human rights of each person involved in the company's business activities; prohibit any form of harassment; and never become involved in the infringement of human rights. - 2) Prohibition of discrimination
In the employment, promotion, remuneration, etc. of employees, never engage in unfair discrimination based on nationality, human rights, beliefs, gender, the color of their skin, religion, ethnicity, academic background, whether they have a disability, whether they are expecting, marital status, or sexual orientation. - 3) Prohibition of forced labor and child labor
Never force labor through threats, restraints, or other means. Furthermore, never use child labor at any stage of the manufacturing process.
- * "Child" used in this provision is defined as anyone under the age of 15, or the age at which compulsory education is completed, or the highest age among the legal working ages under local law.
- 4) Ensuring a (safe and healthy) work environment
Comply with laws on labor, safety, and health; ensure a safe, healthy, and comfortable work environment for all persons involved in the company's business activities; and make efforts to maintain and improve such an environment.
2. Practice thorough compliance including compliance with laws and the prevention of corruption.
- 1) Fair transactions
Engage in fair, transparent, and free competition as well as fair transactions and never engage in fraudulent activity. - 2) Preventing corruption
Prohibit and prevent bribery, corruption, embezzlement, the offering, receiving, and extortion of improper advantage, among others. - 3) Compliance with laws
Comply with the laws (and other agreements) of each country and region as well as international ordinances and social norms.
3. Prevent pollution; effectively utilize limited resources; and make efforts to preserve and recover the natural environment, under the essential task of coexistence of the natural environment and companies.
- 1) Mitigate the environmental burden
Be aware that initiatives to resolve environmental problems are prerequisites for the social existence of a company and its corporate activities; and make efforts to prevent the pollution of the air and water quality and the soil contamination, to effectively utilize limited resources, and to preserve and recover the natural environment. Furthermore, make efforts to mitigate the environmental burden throughout the entire lifecycle of a product, i.e., from the procurement of materials, the manufacturing, the distribution, the use, the recycling, and the disposal of the product. - 2) Management of chemical substances
Thoroughly manage chemical substances and ensure the health and safety of persons who handle such substances and consumers. Be aware of the substances prohibited by the Group and practice thorough management to prevent the contamination of the delivered products by the prohibited substances.
4. Conduct proper quality management and make efforts to establish a quality assurance system.
- 1) Conduct proper quality management of procurement items and make efforts to establish a quality assurance system.
- 2) Regard price, delivery, stable supply, and safety also as elements of quality, and make efforts to assure as well as to maintain and improve the quality of procurement items.
5. Offer accurate and adequate corporate information in a timely and appropriate manner and proactively engage in information disclosures.
- 1) Information disclosures
Offer accurate and adequate corporate information in a simple, timely, and appropriate manner, and proactively engage in the disclosure of information on corporate activities.
Furthermore, regarding matters that impact or may impact safety, the environment or quality, proactively offer information, even if it is not mandated by law.
6. Appropriately manage and protect information as corporate assets and privacy information.
- 1) Protection of information
Appropriately manage and protect information as corporate assets and privacy information, and never illegally or unreasonably use or leak such information. Additionally, take measures against threats to computer networks.
7. Make efforts to eliminate risks by conducting periodic business assessments to ensure the early detection of new risks.
- 1) Risk management
Conduct periodic business assessments and make efforts to ensure the early detection of new risks and eliminate such risks. - 2) Formulation of a BCP (Business Continuity Plan)
Prepare a system that will allow the resumption of the supply of raw materials in the shortest possible time in the event of a disaster.
8. Engage in the responsible procurement of minerals.
- 1) Never use conflict minerals that cause the infringement on human rights, environmental destruction, and other conflicts and become the source of funding for armed groups.
- 2) Make efforts to procure minerals from conflict-free smelters selected by organizations such as the RMI (Responsible Minerals Initiative).
- 3) If, in the unlikely event that the use of conflict-minerals financing armed groups comes to light, make prompt efforts to remedy such a situation.
You are requested to apply the initiatives outlined in 1 through 8 to further upstream suppliers.