Relationships with Suppliers Back Number (2023)
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- Basic Approach
- CSR Procurement
- Participation in Supply Chain Sectional Meeting
- Promotion of Local Procurement
- Supplier Selection Policy
- Compliance with Subcontract Act.
- Green Procurement
- Response to Responsible Minerals Procurement
Basic Approach
The MinebeaMitsumi group's business is supported by relationships with numerous suppliers. Our group has adopted "Basic Procurement Policies" on which healthy partnerships are built. In order to promote CSR throughout our supply chain, we have distributed "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
MinebeaMitsumi Group CSR Procurement Guidelines
Considering the global scope of our 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 "MinebeaMitsumi Group CSR Procurement Guidelines", which is based on "MinebeaMitsumi Group Code of Conduct"*.
"MinebeaMitsumi Group CSR Procurement Guidelines" has Japanese, English, and Chinese version and these versions are revised as necessary. When these are revised, we distribute them to suppliers around the world and ask for their understandings and cooperation once again.
| Nov. 2012 | Added the way to respond against conflict minerals |
|---|---|
| Jan. 2021 | Revised the requirements regarding working hours and responsible minerals procurement |
MinebeaMitsumi Group Code of Conduct (move to company site)
CSR Procurement (move to company site)
Operation of CSR Procurement
We established the "MinebeaMitsumi Group CSR Procurement Self-assessment Checklist"* in 2013 and have asked our suppliers to complete it. Questions on the checklist are divided into the five categories of "General Promotion of CSR," "Human Rights・Labor," "Health and Safety," "Environmental Conservation," and "Ethical Management" to assess risks in the supply chain. We verify progress made with respect to CSR initiatives by providing feedback to our suppliers based on the survey results and individually communicating with suppliers whose results are unsatisfactory.
To do business with our suppliers, we confirm
- if we can do business continuously
- if they can agree and cooperate with us on our CSR procurement
- if they can comply with our green procurement
After confirmation, we conclude Basic Transaction Agreement and aim to improve CSR activities with our suppliers.
To cooperate among whole supply chain, we ask our suppliers to demand the same to their supply chain and to confirm the situation appropriately.
Expansion of CSR Procurement
Considering the both domestic and international human rights movements,in 2021, we acquired agreement of following items regarding human rights and labor from 4,698 suppliers across the world with which our group has continuous business to promote "Responsible Procurement" which is our policy.
Moreover, as of the end of Mar. 2023, we also acquired the agreement from 584 suppliers of the integrated 3 companies (MCI: 252, HTK: 213, MAS: 119).
From 2021, it is essential to obtain the agreement from a supplier to start business.
- A promise to comply with the requirements set forth under MinebeaMitsumi's "CSR Procurement Guidelines":
(1) Freely Chosen Employment, (2) Prohibition of Child Labor, (3) Prohibition of Discrimination,
(4) Prohibition of Harsh or Inhumane Treatment, (5) Minimum Wages, (6) Working Hours, and
(7) Freedom of Association - Supplier requires its supply chain to comply with the guidelines
- Supplier and its supply chain are not violating any items in our guidelines and immediately report to us when violation is found
Activities on CSR Procurement
In FY 2022, we reviewed questions regarding "General Promotion of CSR" in "MinebeaMitsumi Group CSR Procurement Self-assessment Checklist" to grasp futher detailed status of CSR promotion.
With this revised latest "MinebeaMitsumi Group CSR Procurement Self-assessment Checklist", we requested U-Shin's main 118 suppliers in China to answer the questionair, and gained response rate 100%.
By checking their answers, we confirmed that all of them are taking actions towards all of our requirements.
Also, we continue monitoring of U-Shin's 9 domestic suppliers that we conducted questionaire in 2021 and required take measures. 7 suppliers whose target of completion was FY 2022 have already taken measures and we regulary confirm the progress of the rest 2 suppliers whose target of completion is after FY 2023.
In-house Training Regarding CSR Procurement
We have our own training program regarding CSR procurement that all procurement members in all of domestic group companies are required to take the training every year. Taking comprehension check is necessary after the training and the full score is required to complete the program.
In FY 2022, all 271 procurement members in all of domestic group companies completed the program.
Continuous Promotion of CSR Procurement
| 2012 | Mar. : Established "MinebeaMitsumi Group CSR Procurement Guidelines" based on our "MinebeaMitsumi Group Code of Conduct" |
|---|---|
| Nov. : Added the way to respond against conflict minerals to above mentioned "CSR Procurement Guidelines" and distributed to suppliers | |
| 2013 | Established "MinebeaMitsumi Group CSR Procurement Self-assessment Checklist" to grasp the progress of CSR promotion of suppliers |
| Carried out monitoring Minebea's domestic suppliers with the above mentioned "CSR Procurement Self-assessment Checklist" | |
| 2014 | Carried out monitoring Minebea's suppliers in Thailand as above |
| 2015 | Carried out monitoring Minebea's suppliers in China as above |
| 2016 | Carried out monitoring Minebea's suppliers in Singapore/Malaysia as above |
| 2017 | Planned to integrate above mentioned "CSR Procurement Guidelines" as Minebea and Mitsumi merged |
| Distributed above mentioned "CSR Procurement Guidelines" to Mitsumi's suppliers | |
| 2018 | Carried out monitoring Mitsumi's domestic suppliers with the above mentioned "CSR Procurement Self-assessment Checklist" |
| 2019 | Carried out monitoring Mitsumi's suppliers in China as above |
| 2020 | Carried out monitoring Mitsumi's suppliers in Philippines/Thailand/Malaysia as above |
| 2021 | Jan. : Revised the requirements regarding working hours and responsible minerals procurement in the above mentioned "CSR Procurement Guidelines", and distributed the guidelines to suppliers |
| Distributed the above mentioned "CSR Procurement Guidelines" to suppliers of U-Shin that was integrated | |
| Carried out monitoring U-Shin's domestic suppliers with the above mentioned "CSR Procurement Self-assessment Checklist" | |
| 2022 | Carried out monitoring U-Shin's suppliers in China as above |
| Distributed the above mentioned "CSR Procurement Guidelines" to suppliers of MCI, HTK, MAS that were integrated |
Participation in Supply Chain Sectional Meeting
We express to support United Nations Global Compact(hereinafter UNGC) and participate in the sectional meeting regarding supply chain hosted by GCNJ (Global Compact Network Japan) that is Japanese external body of UNGC.
We continuously strive for fair trade and promote CSR activities on supply chain.
Promotion of Local Procurement
We promote local procurement to realize "Work in harmony with the local community" and "Promote and contribute to global society" defined in company credo "The Five Principles" through our procurement activities.
For example, The purchase from local supplier is over 50% in Thai Factory that is our largest production site.
Supplier Selection Policy
Whenever our 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 our group's guidelines and standards on chemical substances in products, and agree to abide by "MinebeaMitsumi Group CSR Procurement Guidelines." When necessary, we conduct inspections of supplier production facilities.
CSR Procurement (move to company site)
Compliance with Subcontract Act.
To ensure the establishment of fair and equitable trading relations with suppliers, our group's domestic sites implement self-auditing for evaluation 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 16 business sites in FY 2022. We evaluate compliance by self-auditing and strive to improve.
Furthermore, in FY 2022 we conducted the training online with 2,373 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 the "MinebeaMitsumi Group policy on conflict minerals"* in October 2012 and adding a section regarding "our response to conflict minerals" to the "MinebeaMitsumi Group CSR Procurement Guidelines". Afterwards, our group reviewed the guidelines in consideration of social trend regarding responsible minerals procurement in recent years. We require our suppliers 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)
* These names were changed from "Minebea Group Code of Conduct," "Minebea Group CSR Procurement Guidelines," "Minebea Group CSR Procurement Self-assessment Checklist," and "Minebea Group Policy on Conflict Minerals" in January 2017.
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