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Procurement Activities

Fujikura Group Basic Procurement Policy

The Group's business is supported by business partners who supply raw materials, parts and equipment. Through fair and fair and sincere procurement activities, the Group has formulated the "Fujikura Group Procurement Basic Policy" in order to establish a solid relationship of trust with its business partners. In addition, we have established the Fujikura Group Procurement Purchasing Division Code of Conduct to strictly control our own actions. In addition, each group company participates and regularly conducts subcontract law sessions, and we are continuing our compliance efforts.

Fujikura Group Basic Procurement Policy

Fujikura Group CSR Procurement Guidelines

With corporate activities becoming more global in nature, a company’s corporate social responsibilities are being called into question not only for itself but its entire supply chain. We created the Fujikura Group CSR Procurement Guidelines for the further understanding and implementation of CSR procurement by suppliers. These guidelines are made available in Japanese, English and Chinese versions, enabling access to suppliers around the world. The third version of the guidelines was released on May 14, 2018.

6 Fields Specified by CSR Procurement Guidelines

1.Human Rights and Labor Practices
(1-1) Prohibiting child labor and respecting limitations on the employment of young workers Do not employ minors below the minimum age for employment or employ young workers in ways detrimental to their development.
(1-2) Prohibiting forced labor All employees are to be hired of their own free will, and employees cannot be forced to work.
(1-3) Eliminating discrimination Eliminate discrimination in recruiting and hiring and strive to provide employees with equal opportunity and fairness of treatment.
(1-4) Prohibiting corporal punishment, abuse, and harassment Respect the human rights of employees and prohibit cruel and inhumane treatment such as abuse and any kind of harassment.
(1-5) Managing working hours appropriately Manage employee working hours, holidays, and days off so that working hours do not exceed the legal maximum.
(1-6) Providing a safe and healthy work environment and promoting wellness Make the work environment comfortable and ensure worker health and safety in the workplace by improving working conditions.
(1-7) Preparing for emergencies To protect lives and prevent injury, identify potential emergencies including disasters and accidents, prepare emergency response measures, and thoroughly disseminate that information throughout the workplace.
(1-8) Providing fair and equitable remuneration Pay employees at least the legal minimum wage and do not take unjust wage deductions.
(1-9) Respecting worker rights Respect employees’ rights to organize as a means to bargain collectively with management regarding their work environment, wage levels, and other issues.
2.Environmental
(2-1) Managing chemical substances used in products Manage chemical substances used in all products as designated by laws and regulations.
(2-2) Managing chemical substances used in the manufacturing process Manage chemical substances used in the manufacturing process as designated by the local laws.
(2-3) Utilizing an environmental management system Create and utilize a system for environmental management.
(2-4) Minimizing environmental impact (air, water, soil pollution) Comply with the local laws regarding air, water, and soil pollution and, when necessary,
use voluntary standards to further reduce the burden on the environment.
(2-5) Legal and regulatory compliance Comply with the local laws and regulations, obtain necessary permission from the authorities, and submit required administrative reports without fail.
(2-6) Effective resource and energy use Set voluntary goals for resource and energy savings and find ongoing ways to use them more effectively.
(2-7) Reducing greenhouse gas emissions Set voluntary targets for reducing greenhouse gas emissions and find ways to make those reductions ongoing.
(2-8) Reducing waste Set voluntary targets for reducing final waste and find ways to make those reductions ongoing.
(2-9) Disclosure of environmental protection initiative status Disclose the results of environmental activities as required.
3.Fair Trade and Ethics
(3-1) Prohibiting corruption and bribery Maintain healthy and acceptable relationships with government officials and politicians.
Do not pay bribes or give illegal political donations.
(3-2) Prohibiting buyers from taking improper advantage of suppliers Do not use your advantageous position as a buyer to inflict losses on suppliers.
(3-3) Prohibiting giving or accepting illegal payoffs Do not give or accept illegal payoffs in stakeholder relationships.
(3-4) Prohibiting acts that inhibit competition Do not engage in acts that inhibit fair, transparent, and free competition.
(3-5) Providing accurate product and service information Provide accurate information to consumers and clients about products and services.
(3-6) Prohibiting intellectual property infringement Do not infringe upon the intellectual property rights of others.
(3-7) Managing exports appropriately Create a well-defined management system to take care of the appropriate application procedures for the export of legally restricted goods or technologies.
(3-8) Responsible minerals sourcing Aim at nonuse of minerals assisting human rights violation
(3-9) Information disclosure Proactively provide/disclose information to stakeholders regardless of whether making the information public is legally required.
(3-10) Prevention and early detection of corruption Take action to prevent corruption and put in place a system to quickly detect and address corrupt activity.
4.Product Quality and Safety
(4-1) Ensuring product safety When the supplier designs the product, ensure that the product meets the safety standards of all countries.
(4-2) Utilizing a quality management system Create and utilize a quality management system.
5.Information Security
(5-1) Safeguarding against computer network threats Take security measures against computer network threats to prevent harm to your company and other companies.
(5-2) Safeguarding personal information Appropriately manage and safeguard the personal information of clients, third parties, and your employees.
(5-3) Safeguarding client and third-party confidential information Appropriately manage and safeguard confidential information received from clients and third parties.
6.Contributing to Society
(6-1) Contributing to foreign and local societies Engage in voluntary activities that contribute to the development of the foreign or local community.

Responding to Issues of Great Interest in Society

The British Modern Slavery Act 2015 Statement

The Fujikura group created the "Fujikura Group Statement on the Modern Slavery Act and Human Trafficking" in response the United Kingdom's Modern Slavery Act 2015. The Fujikura group understands that we must protect the human rights of all of the people effected by our business. To respect human dignity and internationally recognized human rights, we created a statement regarding efforts for the abolition of modern slavery and human trafficking.

Fujikura Group CSR Procurement Promotion System

With the globalization of companies speeding up today, the importance of social responsibilities in procurement activities continues to increase. Fujikura and the Fujikura Group regularly convenes internal meetings on CSR, which were held on two occasions in fiscal 2017. In addition, the theme of ESG has been increasing recently, such as the importance of human rights due diligence in the supply chain and information on climate change. These meetings lead to the strengthening of procurement staff.

In addition, the Fujikura Group Partners Meeting is held annually as a venue for direct dialogue with all suppliers. Through direct communication, we make efforts toward CSR procurement across the supply chain, including fostering understanding in CSR procurement of the Fujikura Group.

Risk Assessment of the Supply Chain

The Fujikura Group carries out investigations of supply chain management at procurement divisions of each Group company in order to identify and minimize risk in the supply chain. At the same time, we host review meetings involving experts as an initiative for human rights due diligence.

CSR Survey for the Supply Chain

The Fujikura Group conducts a supply chain management survey regularly for major suppliers in order to understand the situation of their CSR activities in the supply chain. The results of the survey are shared with suppliers in the form of feedback. The survey covers the following matters.

  • Implementation status of CSR procurement by suppliers
  • Implementation of supplier assessments
  • Response to conflict minerals in procurement
  • Status of initiative to prevent the use of environmental load substances in products
  • Implementation of the Fujikura Group CSR Procurement Guidelines
  • Visibility of the UK’s anti-slavery law and response, among others

Supplier Assessment System

In order to achieve an appropriate supplier structure by fairly and equally evaluating suppliers from the standpoint of quality, cost, delivery, development, and management, the Fujikura Group introduced a supplier assessment system in fiscal 2016. Going forward, we will expand the scope of this system and establish stronger partnerships with suppliers receiving strong assessments.

Partners Meeting

The promotion and penetration of CSR procurement requires direct dialogue with suppliers. The Fujikura Group hosts the Fujikura Group Partners Meeting in Tokyo, Shanghai and Bangkok every year to obtain the understanding and cooperation of suppliers and work toward CSR procurement across the entire supply chain.

At the Partners Meeting, we provide our business partners with the details of the Fujikura Group business plan, our CSR policies (including human rights and the environment etc), and our CSR procurement guidelines. Recently, we have also shared ESG-related themes with our business partners, including the importance of human rights due diligence in the supply chain and providing information on climate change.

In addition, from 2016, FETL in Thailand has selected suppliers that have received high acclaim in the supplier assesment system and commended them at the Partners meeting in Bangkok. We will build deeper partnerships by sharing best practices with our business partners.

Partners Meeting Image1

Partners Meeting Image2

Response to Conflict Minerals

In August 2011, the Fujikura Group CSR Committee established and announced the Fujikura Group Conflict Minerals Policy of not using conflict minerals procured through inhumane acts by armed forces (violation of human rights, forced labor and child labor) in the Democratic Republic of Congo and the neighboring countries and regions.

In addition, recently child labor has become a problem in cobalt mining. As a result, a response is being considered by the Responsible Minerals Trade Working Group of the Japan Electronics and Information Technology Industries Association (JEITA) to which we belong. We are now sharing information within the Group and will reinforce our responses accordingly.

Fujikura Group Policy for Non-Use of Conflict Minerals

It is the Fujikura group's policy not to use the conflict minerals of tantalum, tungsten, tin, and gold produced through inhumane measures (human rights violations, forced labor, child labor) by armed groups in the Democratic Republic of the Congo and surrounding nations. In the event that their use is confirmed, procurement is halted promptly.

Group Measures Against Conflict Minerals

The Fujikura Group established an official working team on the issue of conflict minerals in time with the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act in the United States in 2010. Through this working team, we established a Group system to deal with the issue, centralized reporting, and also set rules on the Group's responses to customers regarding this issue.

The following shows the major activities that the Fujikura Group conducted regarding the issue of conflict minerals.

Group Measures Against Conflict Minerals

  • *We are proactively working on environmentally friendly procurement activities. The status of this effort is described on the page of "Environmental Activities" under "Green Procurement / Purchase".

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