CSR procurement

CSR procurement

INDEX

  1.  Introduction
  2.  CSR Promotion Guidebook
  3.  Section 1 Code of Conduct 1 Respecting the Laws and Internationally Recognized Standards
  4.  2 Human Rights and Labor
  5.  3 Occupational Safety
  6.  4 Environment
  7.  5 Anti-Corruption
  8.  6 Quality and Safety
  9.  7 Defense Against Cyber Attacks
  10.  8 Business Continuity Plan
  11.  Part 2 Establishment of Management System

Introduction

 In recent years, the business environment has diversified and has been drastically changing due to the globalization of business activities and the maturation of the information society. In the meantime, the entire society has been showing greater concern for corporate engagement regarding the formation of a sustainable society, by such means as strict criticism of frequent corporate scandals and insincere corporate acts.

 In these social circumstances, in developing our global enterprise in Japan and abroad, Sanken Group has endeavored to construct a relationship of mutual cooperation and reliance with our business partners and has also actively worked to discharge our corporate social responsibility (CSR) in line with “the Sanken Group Behavior Guideline” and “the Sanken Conduct Guideline”, which were established as guidelines to embody the “Business Philosophy” and the “Business Creed”.

 We have put together the “Basic Procurement Concept”, “Guidelines for Procurement Activities”, and “Requests to Suppliers” in our material purchase activities into the “Sanken Basic Purchasing Principles”,and have asked the suppliers from whom we purchase materials to cooperate with us. We are today required to promote our CSR activities as a whole supply-chain which consists of both us and all our suppliers engaged in some business process or another. This social requirement is also growing stronger regarding corporate procurement activities and is expected to grow even stronger from now on. We believe that it will be necessary to ask our suppliers to understand our viewpoint about Sanken's CSR and to cooperate with us more than ever, in order to respond to such social demands.

 This is why we have now specified the “Basic Purchasing Principles” and also put together our basic thoughts on Sanken's supply-chain CSR promotion into the “Sanken Supply-Chain CSR Deployment Guidebook” (hereinafter referred to as “This Guidebook”). We would like to make a request to our suppliers for understanding of each item explained therein, and for greater efforts to advance CSR in our supply-chain.

 At the same time, we have prepared “Check Sheets”, for suppliers to evaluate their own engagement status for each CSR item described in This Guidebook. We suppose the “Check Sheets” are not only for our mutual confirmation of CSR promotion status but also for facilitating the supplier's CSR engagement along with This Guidebook. Based on the increasing social demands regarding CSR, we have created the 4th edition.

 We hope that we and our suppliers will stand on a common ground with respect to CSR, through This Guidebook and the Check Sheets, and we would like to make a cordial request to our suppliers for their kind and active engagement in CSR activities.

October 2024
SANKEN ELECTRIC CO.,LTD

This Guidebook and the Check Sheets were worked out based on the “Supply-Chain CSR Deployment Guidebook” which was established in March 2020 by the Japan Electronics and Information Technology Industries Association (JEITA).

CSR Promotion Guidebook

 2 Human Rights and Labor

 Companies must respect the rights of workers in line with international human rights standards including the ILO core labor standards in addition to complying with relevant laws and regulations.

(2-1)Prohibiting Forced Labor

 Companies must not use labor obtained by forced, bonded, exploitative prison labor, slavery, or human trafficking. Companies also must not force to work, and must keep the right of workers to terminate employment.

(2-2)Prohibiting Child Labor and Respecting the Rights of Young Workers

 Companies must not allow children who are under the minimum age for employment. Furthermore, companies must also not allow young workers under the age of 18 to perform hazardous work that is likely to jeopardize their health or safety, including night work or overtime.

(2-3)Decent Working Hours

 Companies must not allow workers to work exceeding the maximum working hours set by local laws and regulations, and appropriately manage working hours and days off in consideration of internationally recognized standards.

(2-4)Adequate Wages and Allowances

 Companies must comply with all applicable laws and regulations regarding payments of work (including minimum wage, overtime payments, and allowances and deductions required by law). Furthermore, it is expected that companies pay wages at a level that allows workers to support their basic needs (a living wage).

(2-5)Prohibiting Inhumane Treatment

 Companies must respect the human rights of workers and must not treat workers in a manner that is or may be construed inhumane, including physical and psychological abuse, coercion, or harassment. Companies must also provide workers with individually secured accommodations for storing their personal and valuable items, and a reasonable personal space along with reasonable entry and exit privilege.

(2-6)Prohibiting Discrimination

 Companies must not engage in discrimination or harassment. Companies must also consider requests from workers regarding religious practices where appropriate.

(2-7)Freedom of Association and Right to Collective Bargaining

 In conformance with local laws and regulations, companies shall respect the right to collective bargaining of workers and openly communicate with workers for improving working environments and wage conditions.

 3 Health and Safety

 In addition to complying with relevant laws and regulations, Companies must take consideration of standards such as ILO health and safety guidelines to minimize injury and illness in the workplace and maintain a safe and healthy working conditions.

(3-1)Occupational Safety

 Companies must identify and assess risks regarding occupational safety and maintain safety through proper design, engineering and administrative controls. Taking reasonable steps must also be taken to protect pregnant women and nursing mothers.

(3-2)Emergency Preparedness

 Companies must identify the possibility of emergency situations by such as natural disasters or accidents that may adversely affect human life or safety, establish procedures in case of emergency to minimize harm to workers and property, install the required equipment, and conduct training and drills so that the required responses can be taken in case of emergency.

(3-3)Occupational Injury and Illness

 Companies must identify, assess, record, and report the status of occupational injury and illness, and implement appropriate countermeasures and corrective actions.

(3-4)Industrial Hygiene

 Companies must identify, assess, and appropriately control the risk of workers being exposed to hazardous biological, chemical, or physical agents in the workplace.

(3-5)Physically Demanding Work

 Companies must identify and assess worker exposure to the hazards of physically demanding tasks and appropriately control such work so that it does not lead to occupational injury and illness.

(3-6)Machine Safeguarding

 Companies must evaluate the machinery used by workers for safety hazards and provide appropriate safeguarding.

(3-7)Health and Safety at Facilities

 Companies must appropriately maintain the health and safety of facilities and accommodations provided to workers (such as dormitories, cafeterias, and toilets).
Dormitories also require appropriate emergency egress to be provided.

(3-8)Health and Safety Communication

 Companies must provide training on appropriate health and safety information regarding various workplace hazards that workers are exposed to in the workplace in languages and methods that the workers can understand. A system that enables workers to provide feedback on safety is also required.

(3-9)Worker Health Management

 Companies must conduct appropriate health management for all employees.

 4 Environment

 Companies must actively address environmental problems such as resource depletion, climate change, and pollution, as well as address regional environmental problems considering the health and safety of its relevant local community.

(4-1)Environmental Permits and Reports

 Companies must obtain the permits and approvals required for conducting business as well as register and report according to local laws and regulations.

(4-2)Reducing Energy Consumption and Greenhouse Gas Emissions

 Companies must address energy efficiency and make continuous efforts for reducing greenhouse gas emissions and energy consumption.

(4-3)Air Emissions

 Companies must comply with relevant laws and regulations and implement appropriate measures for reducing the emission of hazardous substances to the atmosphere.

(4-4)Water Management

 Companies must comply with laws and regulations, monitor the source, usage, and discharge of water used, and save water. All wastewater must be tested as required, and monitored, controlled, and processed before discharge or disposal. Sources of pollution that may cause water pollution must also be identified and appropriately managed.

(4-5)Effective Utilization of Resources and Waste Management

 Companies must comply with laws and regulations and implement appropriate management in order to promote the 3Rs (reduce, reuse, and recycle), ensure the effective utilization of resources, and minimize waste.

(4-6)Chemical Substance Management

 Companies must comply with laws and regulations to identify, label, and manage chemical and other substances posing hazard to humans or the environment, and conduct management to ensure safe handling, transport, storage, use, recycling, reuse, or disposal of such substances.

(4-7)Managing the Chemical Substances Contained in Products

 Companies must comply with all laws, regulations, and customer requests applicable to the prohibition and restriction of specific substances contained in products.

 5 Fair Trading and Ethics

 Companies must conduct business activities based on high ethical standards in addition to compliance with the law.

(5-1)Preventing Corruption

 Companies must not be involved in bribery, corruption, blackmail, or embezzlement in any form.

(5-2)Prohibiting Inappropriate Provision and Improper Benefit

 Companies must not provide or accept any promises, propositions, or approvals as a means of obtaining bribes or any other illicit or inappropriate benefit.

(5-3)Fair Information Disclosure

 Companies must disclose information regarding labor, health and safety, environmental activities, business activities, organizational structure, financial situation, and performance according to applicable laws and regulations and industry practices. Falsification of records or the disclosure of false information is not allowed.

(5-4)Respecting Intellectual Property

 Companies must respect intellectual property rights and the transfer of technology and expertise must be performed in a manner where intellectual property is protected.
Companies must also protect the intellectual property of third parties such as customers and suppliers.

(5-5)Conducting Fair Business

 Companies must engage in fair business, competition, and advertising.

(5-6)Protecting Whistleblowers

 Companies must protect the confidentiality of information regarding whistleblowing and the anonymity of whistleblowers and avoid retaliations towards whistleblowers.

(5-7)Responsible Minerals Procurement

 Companies must exercise due diligence to ensure that the minerals such as tantalum, tin, tungsten, and gold contained in its products manufactured do not cause or contribute to serious human rights abuses, environmental destruction, corruption, or disputes in Conflict-Affected and High-Risk Areas.

 6 Quality and Safety

 Companies must ensure the safety and quality and provide correct and accurate information on provided products and services.

(6-1)Ensuring Product Safety

 Companies must fulfill their responsibility as a supplier by ensuring that products meet safety standards stipulated by national laws and conduct design, manufacturing, and sales to ensure adequate product safety.

(6-2)Quality Management

 Companies must comply with their own quality standards and customer requirements in addition to all laws and regulations applicable to the quality of products and services.

(6-3)Providing Accurate Information on Products and Services

 Companies must provide correct and accurate information on products and services that will not cause misunderstandings.

 7 Information Security

 Companies must prevent leaks of confidential information and personal information and enhance information security.

(7-1)Defense from Cyber Attacks

 Companies must implement protective measures against threats such as cyber attacks and conduct management to prevent damage to the company and others.

(7-2)Protecting Personal Information

 Companies must comply with relevant laws and regulations and appropriately manage and protect all personal information of suppliers, customers, consumers, and employees.

(7-3)Preventing Leak of Confidential Information

 Companies must appropriately manage and protect the confidential information not only of their own but also received including from customers and third parties.

 8 Business Continuity Planning

 Companies must make preparations to ensure that they can quickly resume business activities in order to fulfill their responsibility of supply in the event that the company or a business partner becomes a victim of such as a large-scale natural disaster.

(8-1)Developing and Preparing a Business Continuity Plan

 Companies must identify and assess risks to business continuity, examine their impact on the business, and establish preparatory measures required in the medium to long term and a business continuity plan (BCP) that indicates the status of those initiatives.

Section 2 Establishing a Management System

A Establishing a Management System

 Companies must establish a management system in order to comply with the code of conduct in Section 1.

B Supplier Management

 Companies must establish a process for communicating the requirements of the code of conduct in Section 1 to suppliers and monitoring supplier compliance.

C Proper Import/Export Control

 Companies must maintain a clear management system and conduct appropriate procedures for the import and export of technologies and goods regulated by law.

D Establishing a Grievance Mechanism

 Companies must establish a grievance mechanism that can be used by stakeholders including workers and suppliers in order to prevent illicit behavior in their inside as well as throughout the supply chain.

E Disclosing the Activities

 Companies must disclose information regarding their actions according to these guidelines and relevant laws and regulations.

That is all.