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.

The Fujikura Group runs its business with the support of its suppliers of materials, parts, and equipment. To build strong relationships of trust with these suppliers through fair, square, and sincere procurement, we formulated the Fujikura Group Basic Procurement Policy.

In corporate activities that are becoming increasingly global, responsibility to society is being questioned, not only within the company, but the overall entire chain as well. At the Fujikura Group, “CSR Procurement Guidelines for Fujikura Group” has been prepared so that we can expect even greater understanding and practice for CSR procurement by our suppliers.

In the rapid globalization of business operations, companies are increasingly being required to fulfill their social responsibility in their procurement activities. In response, Fujikura Ltd. and Fujikura Group companies regularly hold a liaison meeting to foster group-wide CSR-oriented procurement activities. We also hold the Fujikura Group's partners' meetings to foster direct dialogue with suppliers and ask for their cooperation to promote CSR-oriented procurement across the supply chain.

The Fujikura group plans to ascertain risks in the supply chain and hold inspections of supply chain management of the purchasing department of each company, with the goal of minimizing those risks.

In order to foster and expand CSR-oriented procurement, we deem it critical to have direct dialogue with suppliers. Based on this idea, the Fujikura Group holds partners' meetings to gain suppliers' understanding and support to foster CSR-oriented procurement across the supply chain.

We also held one such meeting in Tokyo, China and Thailand to foster CSR-oriented procurement globally across the supply chain every year.

To grasp the actual conditions of CSR activities in the supply chain, the Fujikura group regularly holds a supply chain management survey for key suppliers. We give feedback to the suppliers on the results of the survey with the goal of sharing information.

To fairly rate suppliers from the viewpoints of Q (quality), C (cost), D (delivery date correspondence), D (development contribution), and M (management) and establish an appropriate supplier layout, the Fujikura group implemented a supplier rating system in FY2016. We plan to expand the scope of application and form even deeper partnerships with highly rated suppliers.

While participating in study sessions to learn about the importance and effectiveness of complaint handling mechanisms usable by domestic and overseas employees and those who work in the supply chain, Fujikura was also involved the making of the Complaint Handling Mechanism Guidelines. (Sponsor: Caux Round Table)

In August 2011, the 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 world’s largest armed conflicts occurring in the Democratic Republic of Congo and the neighboring countries and regions.

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.

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.