Working with Our Suppliers

CSR Procurement

The following is a timeline of our CSR procurement activities.

FY2006 Formulated the Mitsui Chemicals Group Purchasing Policy
FY2007 Conducted first CSR survey
FY2008
FY2012 Visited 18 suppliers with a survey score of less than 10 and assisted with improvements
FY2013 Conducted a second CSR survey
FY2014 After receiving the results of the second round survey, visited and conducted hearings with supplier as a part of efforts to assist with improvement measures and good practice suppliers
FY2015 Implemented various measures including the collection of information concerning CSR procurement
(Participated in the Global Compact’s Supply Chain Advisory Group meetings)

Survey and Feedback concerning CSR Procurement

The 20 categories included in our “CSR Survey,” which was conducted in fiscal 2013, are as follows.

CSR Survey

Category Requirements
1 Corporate governance/
CSR
1 Has set out management principles, corporate action guidelines, etc. and provides employees with training to ensure legal and regulatory compliance
2 Takes steps to prevent, quickly detect and respond to illegal acts
(internal whistleblowing system (risk hotline), committees, etc.)
3 Implements a code of conduct, CSR policy, etc. and has an internal framework (responsible departments/directors) in place to promote corporate social responsibility (CSR)
4 Conducts surveys, etc. to confirm that partners (raw material suppliers, subcontractors, etc.) have in place their own CSR frameworks (respecting human rights, reducing environmental impact, etc.)
2 Fair trade/
ethics
5 Understands anti-corruption legislation (relating to political contributions/donations, bribery, etc.) and provides employees with training in order to prevent unethical relations with government officials, dealings with antisocial groups and organizations, etc.
6 Does not abuse its position to disadvantage suppliers or engage in conduct that could hinder fair, transparent and free competition
Does not give or receive inappropriate benefits to or from concerned parties
7 Actively provides and discloses information relating to the company via its website, pamphlets, etc. (details of business activities, finances, results, environmental activities, damage caused by large-scale disasters, negative impact on the environment and/or society, detection of serious legal violations, etc.)
3 Quality/
safety
8 Provides customers with important information regarding its products and services, including quality, usage instructions and recalls
9 Has a framework and procedures in place for handling customer complaints relating to the quality of products or services
4 Health and safety/
risk management
10 Maintains an environment in which employees can work safely and healthily, including improving working conditions, taking safety measures and providing health checkups for employees
11 Monitors and manages risks associated with equipment and processes, including machinery safety measures, minimizing physical impact on employees, and implementing noise and dust control measures
12 Strives to prevent industrial and unforeseen accidents, and always ensures that the necessary safety equipment and emergency supplies are available in the event of a natural disaster or other emergency
13 Has pre-arranged procedures in place between all concerned parties in the event of a disaster or accident, including means of contacting the authorities and external measures to protect local residents and customers
14 Has a clear internal framework in place in the event of a large-scale disaster, including formulating a business continuity plan (BCP), establishing an internal communication network and designating external points of contact
5 Environment 15 Makes an effort to implement energy saving activities, reduce greenhouse gas emissions (prevent global warming), minimize waste, etc.
6 Human rights/
labor
16 Respects universal human rights and makes an effort to prevent human rights violations based on an accurate understanding and awareness of human rights issues
17 Takes steps to prevent child labor, forced labor and unreasonably cheap labor
18 Provides employees with training in an effort to eliminate discrimination with regard to recruitment, assignment, training, evaluation or remuneration, based on gender, age, disability, etc.
7 Information/
security
19 Manages its own intellectual property, including patents, copyrights and trademarks, and respects intellectual property belonging to third parties
20 Adequately manages personal information, including that belonging to customers and employees, and confidential information obtained from customers and other third parties

CSR procurement survey results

We have compiled the results of the second round of surveys conducted in fiscal 2013. In fiscal 2013, responses were collected from 1,647 companies, with an average score of 17.8 (out of 20). Please see the graph below for full details.
Questions relating to legal compliance, human rights, and the fundamental rights of workers attracted high execution rates. Efforts to promote the development of a CSR structure in upstream areas of the supply chain including surveys exhibited low execution rates (question 4). This was followed by efforts to build an internal structure at the time of a large-scale disaster where the execution rate was 68% (question 14).
Hearings were conducted covering reference studies of the CSR procurement activities of suppliers who scored high marks in the survey. A significant number of companies also conducted surveys with a certain number engaging in hearing activities in similar fashion to the Company.

 

Extending Risk Hotline Access to Suppliers

We have extended access to our Risk Hotline internal reporting system to include external parties since July 2010. In fiscal 2014, activities were undertaken to again bring the Risk Hotline service to the attention of 1,800 suppliers. This means that, if any supplier obtains information relating to issues such as potential compliance violations within the Mitsui Chemicals Group, they can report the matter to our Risk Hotline.