Basic Procurement Policies/Sumitomo Electric Group CSR Procurement Guidelines
We operate our procurement activities under Basic Procurement Policies of Sumitomo Electric Group. We would like our suppliers to understand and cooperate on Sumitomo Electric Group CSR Procurement Guidelines, which is established under the Sumitomo Spirit & the Sumitomo Electric Group Corporate Principles.
- Basic Procurement Policies
- 1. Promoting procurement activities that contribute to creative and global corporate activities
- 2. Promoting fair and impartial procurement activities
- 3. Promoting compliance-based procurement activities
- 4. Promoting procurement activities based on mutual trust and cooperation with suppliers
- 5. Promoting procurement activities friendly to the global environment
- Sumitomo Electric Group CSR Procurement Guidelines
Sumitomo Electric Group aims to contribute to creating a better society and environment, with a firm awareness of our social responsibility. We regard that our suppliers’ cooperation is necessary to contribute to this. Therefore, we summarize our requests to the suppliers in these guidelines. We appreciate that you promote these guidelines, as well as request your suppliers to comply with them.
- 1. Provision of Useful and Safe Products and Services
- 2. Improvement of Technological Capabilities
- 3. Promotion of Sound Business Management
- 4. Contribution to Preservation of the Global Environment
- 5. Compliance with Laws and Social Norms and Fair and Proper Business Activities
- 6. Social Contribution and Elimination of Antisocial Forces
- 7. Respect to Human Rights and Considerations of Occupational Health and Safety
(Including Response to the Issue of Conflict Minerals)
- 8. Disclosure of Information and Promotion of Communication with Society
- 9. Maintenance of Confidentiality and Information Security
Commitment to Compliance
We regard that compliance is also more important than any procurement activities. Particularly on Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (the Subcontracting Act) in regard to appropriate dealings with subcontractors, we annually organize training seminars, self-examinations, and supervision patrols for our division and domestic affiliates in order to encourage their full compliance with this act.
Contribution to Preservation of the Global Environment
To promote environment friendly procurement activities, we attempt to eliminate the banned substances from products and to enhance control of other chemical substances contained in products, based on the SEI Guidelines for Green Quality Purchases (*). We will promote the effort to preserve the global environment through the joint efforts with suppliers.
Quality Improvement Activities for Purchase
We purchase a wide variety of products including raw materials, electronic parts, equipment and software. The quality control of these purchases is very important for our business operation. In this regard, we established “Quality Control Guidelines for Suppliers” (*) in September 2010 and ask our suppliers to keep the quality assurance according to this. This guideline is based on ISO9001, and states our policies for the quality assurance of our purchases and the requirements for our suppliers. Cooperating with our suppliers, we will continue to secure product quality and safety.
Response to the Issue of Conflict Minerals
We recognize this issue as a major social challenge and aim to keep DRC conflict-free* for our business. The Sumitomo Electric Group, which is “Promoting compliance-based procurement activities” as stated in the Basic Procurement Policies, recognizes that the matter of conflict minerals** illegally traded by armed groups in the Democratic Republic of the Congo and its neighboring countries is a serious social issue in the supply chain. To fulfil our social responsibility in procurement activities, we aim to procure or use no conflict minerals involving any illegal or dishonest acts as raw materials. To this end, we investigate the supply chain on the use of conflict minerals when necessary. In the event that the use of minerals that may cause a social problem or serve as fund for armed groups is found, we will take measures to avoid their use.
In accordance with the principle of “Promoting procurement activities based on mutual trust and cooperation with suppliers” in the Basic Procurement Policies, we will ask suppliers to understand the approach of the Sumitomo Electric Group and cooperate with our investigation mentioned above. In case that the use of minerals of concern is found, the relevant suppliers will be requested to take measures to avoid their use as we do in the Group.
Other Activity: Cooperation with Our Suppliers
SEDI Partners’ Meeting
We annually hold SEDI Partners’Meeting and invite our domestic and overseas suppliers of raw material, equipment, and parts manufacturers.
Information on business environment and procurement policies are shared. This strengthens our partnerships and promotes confidence building between us.
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