Procurement Policy

Procurement Activities

We procure needed goods, components, software, and services based on the Shinko Procurement Policy that we established to carry out business operations while taking into consideration such matters as protection of the global environment, compliance, respect for human rights, labor, health and safety, ensuring the safety and quality of products and services, maintenance and promotion of information security, fair trade, and corporate ethics.

Shinko Procurement Policy

Coexistence with Suppliers

We strive to establish a relationship of coexistence in which Shinko and our suppliers, as good business partners, build a long-term trustful relationship and close cooperation based on continuous efforts and improvements on both sides and thereby prosper together.

Fair Trade (Fair, transparent, proper evaluation and selection)

We promote fair, transparent and free competition and do not engage in any illicit trade.
We provide open and fair access to companies that wish to become new suppliers.
We evaluate and select suppliers comprehensively based on such criteria as credibility as an enterprise; technology; quality, price and delivery of procurement items; and the level of engagement with environmental protection initiatives.

Compliance with Laws and Social Norms

We adhere to applicable laws and social norms in our procurement operations and are committed to working with suppliers to fulfill our social responsibility in the supply chain.

Protection of the Global Environment

We promote green procurement throughout the entire supply chain by requesting suppliers to establish environmental management systems and control of chemical substances.

Procurement Guidelines

We draw from our corporate philosophy (The Shinko Way) and the Shinko Procurement Policy to work out the Procurement Guidelines, promoting procurement activities that give proper care and concern to the demands of society.
We follow these guidelines ourselves and ask suppliers to follow them as well.

1. Protection of the global environment

• Promote the procurement of materials that have minimal environmental impact.
• Promote thorough management procedures for chemical substances.

2. Compliance

• Comply with laws and regulations in Japan and overseas, as well as social norms.

3. Respect for human rights, labor, health and safety

• Respect the human rights of each individual.
• Do not commit unfair discrimination or acts that infringe human rights.
• Implement a pleasant working environment for the health and safety of employees.
• Do not use child labor or forced labor.

4. Assurance of safety and quality of products and services

• Assure the safety and quality of products and services.

5. Maintenance and promotion of information security

• Provide appropriate protection for our own information and information systems and those of third parties.

To Our Suppliers

Based on our Procurement Guidelines, we specifically ask our suppliers to promote the following items proactively:

1. Green Procurement
We promote green procurement through procuring lower-environmental-load goods and thoroughly managing chemical substances contained in products. We also ask for our suppliers’ cooperation in promoting green procurement initiatives.
* Please refer to our Environmental Policy.

2. Business Continuity Planning (BCP)
Natural disasters or other contingencies could hinder our procurement. In such an event, we ask our suppliers to inform us of the situation as soon as possible. We also ask our suppliers to draft a business continuity plan and inform us of its details before such a disaster or contingency occurs.

3. Excluding Antisocial Forces
We do all we can to terminate any relationships with antisocial forces that threaten the peace and order of society. We also ask for our suppliers’ cooperation in responses to such forces.

4. Initiatives for Responsible Minerals Sourcing
We work with our suppliers to ensure transparency in procurement and supply chain activities as well as the practice of responsible mineral procurement based on the Fujitsu Group Policy on Responsible Minerals Sourcing*1. We actively work to avoid the procurement of high-risk minerals which promote conflicts or relate to acts of extreme violence, forced labor, and human rights atrocities. We also ask for our suppliers’ cooperation in promoting this initiative.
*1: As part of its due diligence, the Fujitsu Group conducts high-risk minerals surveys with reference to the “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas”. (The Fujitsu Group identifies tantalum, tin, gold, tungsten and cobalt as high-risk minerals.)

Responsible Minerals Sourcing
The exploitation of natural resources in the Democratic Republic of the Congo (DRC) and its neighbors has been used to fund armed groups engaged in promoting conflicts, acts of extreme violence, forced labor, and human rights atrocities.
The "Dodd Frank Wall Street Reform and Consumer Protection Act" established in the United States in 2010, requires certain companies using gold, tin, tungsten and tantalum to make efforts to determine if its minerals purchases are funding armed groups in the DRC or an adjoining country.
Also in the European Union, the "Conflict Minerals Regulation" was adopted in March 2017, and as from January 2021, importers of minerals resources in EU countries are obligated to conduct due diligence to ensure that their procured minerals do not contribute to human rights atrocities during mining, transportation, and transaction.

5. Corporate Social Responsibility
In recent years, corporations have been tasked with a social responsibility to be proactive in developing a sustainable society. We respect and promote the Responsible Business Alliance (RBA)* Code of Conduct in such activities.
We also ask for our suppliers’ cooperation in promoting the code.
Please refer to the following PDF for more information regarding the RBA Code of Conduct.
　*Name changed from the Electronic Industry Citizenship Coalition (EICC) in October 2017

RBA Code of Conduct.< Version 7.0 >（English）