CSR

CSR Integrated Report

Fujikura Group CSR Integrated Report 2014

[ISO 26000 Core Subject] Fair Operating Practices

Procurement

Revision of the Fujikura Group Basic Procurement Policy

With the further globalization of the Fujikura Group’s business operations, the enhancement of supply chain management is becoming one of the Group’s priorities to ensure its business continuity. In particular, with regard to measures for substances of concern (SOCs), greenhouse gases, and conflict minerals, we cannot achieve results without the help of material and part suppliers. In recognition of this, the Group has added a new item (environmental consideration) to its Basic Procurement Policy and is conducting activities for the creation of a sustainable society.

Fujikura Group Basic Procurement Policy

1. Fair and level trade: Fujikura Group Companies open doors worldwide for suppliers. We will provide equal opportunity with potential suppliers and encourage free competition. We evaluate them through fair and sound assessment process for price, quality, delivery, stable supply, technological competence and reliability.
2. Collaborative relationship with suppliers based on mutual trust: Fujikura Group Companies keep faith and honesty to suppliers. We always endeavor to develop collaborative, mutually-beneficial relationship with suppliers based on mutual trust. We strictly control any information obtained through business and do not disclose without prior consent.
3. Compliance with laws, regulations and social norms: Fujikura Group Companies comply with not only relevant laws and regulations but also conduct transactions in accordance with business ethics and social norms in the countries and regions where we are doing business.
4. Environmental preservation: Fujikura Group companies strive for environmental management program designed to minimize the impact on the environment together with our suppliers in order to contribute to preservation of global environment and realization of sustainable society.

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

Global companies are required to fulfill their CSR across their supply chains. To meet this requirement, the Fujikura Group makes the following CSR-related requests to major suppliers, thereby promoting CSR-oriented procurement.

Supply chain management examination meeting

Enhancing relationships with suppliers

At the time of the Great East Japan Earthquake and flooding in Thailand, we found the importance of preventing the fragmentation of the supply chain, which connect us with suppliers and customers. Also against the mega-quakes that are predicted to occur in the near future, there is a strict requirement that Japanese companies make disaster control efforts including the formulation of BCP. Furthermore, to take measures against conflict minerals mainly in the United States, we need to enhance relationships and cooperation with our partners (suppliers). Under these circumstances, the Fujikura Group has revised the Fujikura Group Basic Procurement Policy to enhance supply chain management both within and outside Japan, held partner’s meetings, and conducted supply chain management questionnaire surveys targeting suppliers.

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

Questionnaire surveys for supply chain management

The Fujikura Group has been regularly conducting a questionnaire survey targeting major suppliers, with a view to identifying the CSR activities conducted across the supply chain for the better management of the chain. The survey results are fed back to suppliers to foster information sharing.

Fujikura Group partners’ meetings

To promote and spread CSR-oriented procurement across the supply chain, the Fujikura Group has been fostering direct communication with suppliers through the Fujikura Group partners’ meetings. We are thereby conducting CSR-oriented procurement across the supply chain, gaining understanding and cooperation from suppliers.

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.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of the United States requires companies to disclose their use of conflict minerals for 2013 and onwards, and in fiscal 2013 we received stricter requests from our customers about investigations of conflict minerals. We responded to these requests and also participated in the study group on socially responsible procurement of minerals of the Japan Electronics and Information Technology Industries Association (JEITA).