CSR

CSR Report

Fujikura Group CSR Report 2013

[ISO 26000 Core Subject] Fair Operating Practices

Procurement

The Fujikura Group Basic Procurement Policy

The Great East Japan Earthquake and the flooding in Thailand caused us recognize the importance of maintaining the supply chain, in coordination with our customers and business partners. To meet this challenge and prepare against mega-quakes that are predicted to hit Japan in the near future, companies are strongly required to make disaster control efforts. Also, regarding the issue of conflict minerals, for which we started to implement measures in January 2013, we felt we needed to enhance cooperation with our business partners. Against this backdrop, we established the Fujikura Group Basic Procurement Policy to enhance our supply chain management amid further globalization of our business operations.

The Fujikura Group Basic Procurement Policy

The Fujikura Group will foster business continuity management in line with the following principles, so that the Group can continue to fulfill its corporate social responsibility and supply its products and services in a stable manner even in the event of an emergency.

1. Fair and equitable transactions: In line with the principle of fair, equitable and free competition, we will search for excellent business partners both in Japan and abroad. We will screen partner candidates based on fair evaluation of their prices, quality, time to delivery, supply stability, technologies, reliability and other criteria.
2. Cooperation based on mutual trust: We will work to build cooperative relations with our business partners in a mutually beneficial manner and in line with the principles of good faith and integrity.
3. Compliance with laws, regulations and social norms: We will deal with our business partners in compliance with laws, regulations and social norms of each country we operate in and will purchase goods after confirming that they were not manufactured or put on sale in violation of any laws, regulations or social norms.
4. Confidentiality: We will strictly manage all confidential information we have gained in dealing with our business partners. We will not disclose such information to third parties without the prior approval of the business partner(s) concerned.

Fair and square procurement

The Fujikura Group runs 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 have formulated Fujikura Basic Procurement Guidelines and posted them on our website. In addition, we have also formulated a Code of Conduct for the Procurement Division to bring discipline to our activities.

All Group companies regularly participate in seminars on the Japanese Act against Delay in Payment of Subcontractor Proceeds, Etc. to Subcontractors to ensure legal compliance across the Group.

CSR-oriented procurement

The Fujikura Group asks its major suppliers to introduce CSR activities focusing on the following items, and to this end have established a web page where suppliers can voluntarily check their own progress in CSR activities. The Fujikura Group is thus fostering CSR activities across its supply chain with the understanding and cooperation of its suppliers.

supply chain

CSR-related requests to suppliers (items)

1.Human rights and occupational safety and health

(1) Prohibition of child labor and restriction of juvenile labor
(2) Prohibition of forced labor
(3) Prohibition of discrimination
(4) Prohibition of bodily punishment, abuse and harassment
(5) Appropriate labor time management
(6) Promotion of a safe, hygienic work environment and health management
(7) Preparation for emergency/disaster
(8) Provision of fair, impartial compensation
(9) Respect for the rights of workers

2.Environment

(1) Management of chemical substances contained in products
(2) Management of chemical substances used in the manufacturing processes
(3) Operation of environmental management systems
(4) Compliance with discharge standards (for wastewater, sludge and exhaust gases)
(5) Compliance with laws, regulations, and ordinances
(6) Effective use of resources and energy
(7) Reduction of greenhouse gas emissions
(8) Waste reduction
(9) Disclosure of progress in environmental conservation measures

3.Fair transactions and ethics

(1) Prohibition of corrupt acts and bribes
(2) Prohibition of the abuse of superior positions
(3) Prohibition of inappropriate provision/reception of profits
(4) Prohibition of anti-competitive behavior
(5) Provision of accurate product and service information
(6) Respect for intellectual property
(7) Appropriate export control
(8) Voluntary information disclosure
(9) Prevention and early detection of illegal acts

4.Quality and safety

(1) Ensuring product safety
(2) Operation of a quality management system

5.Information security

(1) Protection against threats to computer networks
(2) Prevention of the leakage of personal information
(3) Protection of confidential information on customers and third parties

6.Social contribution

Contribution to international and local communities

Response to the issue of conflict minerals

From a humanitarian viewpoint, the Fujikura Group established the principle of not using conflict minerals as materials for its products in August 2011. (Conflict minerals: gold, tin, tantalum and tungsten produced in an inhumane manner in the Democratic Republic of the Congo and surrounding countries/regions)

Fujikura Group Conflict Minerals Policy

The Fujikura Group is committed to prohibiting the use of materials in its production processes, which are tantalum, tin, tungsten and gold mined in the Democratic Republic of Congo or adjoining countries. All group companies are pledged to discontinue purchase of products that contain conflict minerals.

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.
In fiscal 2012, we held a total of 14 briefing sessions on the issue, targeting Group members including executive officers and business departments, and thereby raising awareness of the Group’s stance on the issue. We also received about 60 requests from our customers to reply to surveys on conflict minerals, and responded to their requests in line with our in-house rules. Further, we participated in a study group on socially responsible procurement of minerals, which was launched by the Japan Electronics and Information Technology Industries Association to build the industrial framework to deal with the issue.

Study group established to address the issue of conflict minerals