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Purchasing Policy / CSR Procurement Guidelines

Purchasing Policy

In April 2019, we revised and implemented the Purchasing Policy to promote CSR-related initiatives throughout the supply chain in order to provide the products and services demanded by customers and to continue to be a company trusted by stakeholders.
By adding CSR-related initiatives such as human rights, labor environment, environmental conservation, and compliance to our supplier selection criteria, we will practice selection of suppliers and procurement items based on fair and impartial evaluations.

Updated: April 1, 2019

1. Selection of business partners and procurement items

  • We select our business partners and procurement items by taking into account the followings based on fair and just assessments.
  • 1) Quality, safety, price, delivery, and stable supply of the procurement items
  • 2) Business efforts including technology development capabilities, after-sales services, and cooperation with various survey requests, etc.
  • 3) Corporate stance including CSR initiatives such as those involving human rights, the labor environment, compliance, environmental conservation, etc. and their management systems

2. Open-door policy

  • In terms of business opportunities, we maintain an open-door policy equally to all business partners regardless of whether they are based in Japan or overseas. Furthermore, we are constantly looking toward new information and sources and proactively adopting materials required by the Group.

3. Fairness and compliance

  • We comply with relevant laws and regulations and engage in proper purchasing activities based on fair, transparent, and free competition.

4. Protection of confidential information

  • We appropriately handle and carefully manage information of business partners acquired through procurement activities.

5. Co-existence and co-prosperity

  • We will aim for co-existence and co-prosperity with our business partners and make mutual efforts to build a relationship of trust.

6. CSR Partnership

  • We will cooperate with our business partners to promote CSR initiatives.

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CSR Procurement Guidelines

Dainichiseika Group (the “Group”) engages in its corporate activities in accordance with the Basic CSR /ESG Policy and aspires to be a company that continues to be trusted by its stakeholders.
Furthermore, in order to apply its CSR initiatives to the entire supply chain, the Group selects its business partners and procurement items based on fair and just assessments through the addition of CSR initiatives such as human rights, the labor environment, environmental conservation, and compliance criteria for the selection of its business partners, in addition to conventional items such as quality, safety, performance, price, and stable supply.
In the selection of its business partners and procurement items and the continuation of transactions, the Group has set forth the items, which the Group hopes will also be undertaken by its business partners, and has established the "CSR Procurement Guidelines," as follows.

Updated: July 29th, 2022

1. Respect basic human rights; eliminate discrimination, forced labor, and child labor; and make efforts to improve the labor environment.

  • 1) Respect for human rights
    Respect the human rights of each person involved in the company's business activities; prohibit any form of harassment; and never become involved in the infringement of human rights.
  • 2) Prohibition of discrimination
    In the employment, promotion, remuneration, etc. of employees, never engage in unfair discrimination based on nationality, human rights, beliefs, gender, the color of their skin, religion, ethnicity, academic background, whether they have a disability, whether they are expecting, marital status, or sexual orientation.
  • 3) Prohibition of forced labor and child labor
    Never force labor through threats, restraints, or other means. Furthermore, never use child labor at any stage of the manufacturing process.
    • * "Child" used in this provision is defined as anyone under the age of 15, or the age at which compulsory education is completed, or the highest age among the legal working ages under local law.
  • 4) Ensuring a (safe and healthy) work environment
    Comply with laws on labor, safety, and health; ensure a safe, healthy, and comfortable work environment for all persons involved in the company's business activities; and make efforts to maintain and improve such an environment.

2. Practice thorough compliance including compliance with laws and the prevention of corruption.

  • 1) Fair transactions
    Engage in fair, transparent, and free competition as well as fair transactions and never engage in fraudulent activity.
  • 2) Preventing corruption
    Prohibit and prevent bribery, corruption, embezzlement, the offering, receiving, and extortion of improper advantage, among others.
  • 3) Compliance with laws
    Comply with the laws (and other agreements) of each country and region as well as international ordinances and social norms.

3. Prevent pollution; effectively utilize limited resources; and make efforts to preserve and recover the natural environment, under the essential task of coexistence of the natural environment and companies.

  • 1) Mitigate the environmental burden
    Be aware that initiatives to resolve environmental problems are prerequisites for the social existence of a company and its corporate activities; and make efforts to prevent the pollution of the air and water quality and the soil contamination , to effectively utilize limited resources, and to preserve and recover the natural environment. Furthermore, make efforts to mitigate the environmental burden throughout the entire lifecycle of a product, i.e., from the procurement of materials, the manufacturing, the distribution, the use, the recycling, and the disposal of the product.
  • 2) Management of chemical substances
    Thoroughly manage chemical substances and ensure the health and safety of persons who handle such substances and consumers. Be aware of the substances prohibited by the Group and practice thorough management to prevent the contamination of the delivered products by the prohibited substances.

4. Conduct proper quality management and make efforts to establish a quality assurance system.

  • 1) Conduct proper quality management of procurement items and make efforts to establish a quality assurance system.
  • 2) Regard price, delivery, stable supply, and safety also as elements of quality, and make efforts to assure as well as to maintain and improve the quality of procurement items.

5. Offer accurate and adequate corporate information in a timely and appropriate manner and proactively engage in information disclosures.

  • 1) Information disclosures
    Offer accurate and adequate corporate information in a simple, timely, and appropriate manner, and proactively engage in the disclosure of information on corporate activities.
    Furthermore, regarding matters that impact or may impact safety, the environment or quality, proactively offer information, even if it is not mandated by law.

6. Appropriately manage and protect information as corporate assets and privacy information.

  • 1) Protection of information
    Appropriately manage and protect information as corporate assets and privacy information, and never illegally or unreasonably use or leak such information. Additionally, take measures against threats to computer networks.

7. Make efforts to eliminate risks by conducting periodic business assessments to ensure the early detection of new risks.

  • 1) Risk management
    Conduct periodic business assessments and make efforts to ensure the early detection of new risks and eliminate such risks.
  • 2) Formulation of a BCP (Business Continuity Plan)
    Prepare a system that will allow the resumption of the supply of raw materials in the shortest possible time in the event of a disaster.

8. Engage in the responsible procurement of minerals.

  • 1) Never use conflict minerals that cause the infringement on human rights, environmental destruction, and other conflicts and become the source of funding for armed groups.
  • 2) Make efforts to procure minerals from conflict-free smelters selected by organizations such as the RMI (Responsible Minerals Initiative).
  • 3) If, in the unlikely event that the use of conflict-minerals financing armed groups comes to light, make prompt efforts to remedy such a situation.

You are requested to apply the initiatives outlined in 1 through 8 to further upstream suppliers.