Relationships with Suppliers Back Number (2022)
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Basic Approach
The MinebeaMitsumi Group's business is supported by relationships with numerous suppliers. The MinebeaMitsumi Group has adopted Basic Procurement Policies on which healthy partnerships are built. In order to promote CSR throughout our supply chain, we have distributed the MinebeaMitsumi Group CSR Procurement Guidelines to our suppliers and are striving to facilitate their understanding and cooperation.
We are creating a framework for global CSR procurement in order to promote CSR throughout our global supply chain.
Basic Procurement Policies (move to company site)
CSR Procurement (move to company site)
CSR Procurement
Considering the global scope of the MinebeaMitsumi Group's business activities, we believe it is important to promote CSR throughout our supply chain. In March 2012, we took steps to establish a framework for CSR procurement with the formulation of the MinebeaMitsumi Group CSR Procurement Guidelines, which is based on the MinebeaMitsumi Group Code of Conduct.
In Jan. 2021, considering EU Conflict Minerals Regulation, MinebeaMitsumi reviewed "CSR Procurement Guidelines", and asked for supplier's understanding of the latest guidelines and cooperation by distributing the guidelines in Japanese, English and Chinese to our 6,734 suppliers.
In FY 2021, MinebeaMitsumi established CSR procurement education program to ensure procurement staffs in MinebeaMitsumi group companies in Japan to learn every year, and had all 251 staffs taken the course.
We also require those staffs to take a comprehension test that requires full score to pass the test.
We created the MinebeaMitsumi Group CSR Procurement Self-assessment Checklist and request that suppliers respond in order to determine the status of CSR implementation by suppliers. The checklist includes questions in 5 areas defined by our guidelines: Overall CSR Promotion; Labor; Health and Safety; Environmental Conservation; and Ethical Management. With this checklist, we will conduct risk assessment in our supply chain. We provide feedback concerning the results to suppliers and engage in individual communications with suppliers in cases where issues concerning some measures were identified to ascertain the detailed status of those measures.
In FY 2021, MinebeaMitsumi requested main 75 domestic suppliers that account for 85% of total purchase amount of U-Shin Japan to fill out the checklist.
The response rate was 100%. 66 out of 75 suppliers satisfied all of our requirement. To 9 suppliers that did not meet our requirement on disaster measure, we required those suppliers to prepare recovery plan and conduct periodic training following a protocol.
1 of the 9 suppliers have met our requirement and the rest 8 suppliers are taking action for our requirement.
We will continue the confirmation of the situation until they complete.
As a result, we confirmed that there were not any high risk suppliers and all suppliers meet almost all our requirement.
In addition, in FY 2021, in consideration of human rights, we acquired agreement of following items regarding human rights and labor from 4,617 suppliers with which MinebeaMitsumi group have continuous business.
- 1) Supplier complies with MinebeaMitsumi's "CSR Procurement Guidelines"
- 2) Supplier requires its supply chain to comply with the guidelines
- 3) Supplier and its supply chain are not violating any items in our guidelines and immediately report to MinebeaMitsumi when violation is found
MinebeaMitsumi Group Code of Conduct (move to company site)
CSR Procurement (move to company site)
Supplier Selection Policy
Whenever the MinebeaMitsumi Group initiates a relationship with a new supplier, we ask the supplier to confirm its agreement with our Group's approach to materials procurement and to proceed in accordance with our New Supplier Certification Standards to ensure strict compliance with our Basic Procurement Policies. Specifically, we confirm whether suppliers are able to conduct business in a stable and continuous manner, can satisfy the Group's guidelines and standards on chemical substances in products, and agree to abide by the MinebeaMitsumi Group CSR Procurement Guidelines. When necessary, we conduct inspections of supplier production facilities.
CSR Procurement (move to company site)
Compliance with the Act against Delay in Payment of Subcontract Proceeds, etc.
A training session on the Subcontracting Act in FY2019
To ensure the establishment of fair and equitable trading relations with suppliers, MinebeaMitsumi Group's domestic sites implement self-auditing of compliance with the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors and conduct training on the Act annually.
We implemented the self-auditing at our 12 business sites in FY 2021 to confirm and improve the situation.
Furthermore, in FY 2021 we conducted the training online with 1,127 participants, and all of the participants passed comprehension test.
Green Procurement
We have established and revised the guidelines and standards on chemical substances in products to ensure compliance with countries' laws and directives on chemical substances, to improve the level of customer satisfaction, and to reduce the use of substances having an environmental impact. Under these guidelines, we require our suppliers to provide products (raw materials, parts, components, and packaging materials) that are free of hazardous substances, and also to submit safety certifications, reports of analysis results, and other similar documentation.
Green Procurement (Environmental Activities) (move to company site)
Response to Responsible Minerals Procurement
In August 2012, the U.S. Securities and Exchange Commission adopted a disclosure rule mandated by U.S. financial reform legislation requiring companies to disclose the use of conflict minerals from Democratic Republic of the Congo and its neighbor nations. We responded by formulating a MinebeaMitsumi Group policy on conflict minerals in October 2012 and adding a section on our response to conflict minerals to the MinebeaMitsumi Group CSR Procurement Guidelines. Afterwards, MinebeaMitsumi Group reviewed the guidelines in consideration of social trend regarding responsible minerals procurement in recent years. Our suppliers have been asked to promote initiatives toward the non-use of tantalum, tin, tungsten, and gold and other minerals such as cobalt that are involved in or affecting/affected by conflicts and CSR risks.
Additionally, we continue to respond to research requests from customers by providing responses using our research database.
CSR Procurement (move to company site)
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