Promotion of CSR procurement

Basic Policies

We are currently facing a range of social issues, including environmental problems such as the depletion of resources and energy issues as well as problems related to human rights, corporate ethics and compliance.
Through its business activities and the provision of products and services, the Showa Denko Group has been striving to contribute to the solution of these social problems and to the creation of a society where affluence and sustainability are harmonized. On the other hand, our business activities cover many fields, and our supply chains extend into various industries. Accordingly, in order to promote our social contribution activities, we need to gain the understanding and support of all stakeholders of the Group.
Based on this recognition, we established the Showa Denko Group’s CSR Procurement Guidelines, which we share with our business partners so that we can increase each other’s corporate value through compliance with the guidelines.

Outline of the guidelines

  • An introduction to promotion of corporate social responsibility (CSR)
  • Responsible care (RC) activities
  • Quality and product safety
  • Corporate ethics, compliance and fair trade
  • Environmental protection
  • Safety and hygiene in the workplace
  • Human rights and labor
  • Information security
  • Social contribution
  • Business Continuity Plan
  • Sustainable procurement

Ways of promoting CSR procurement

We promote CSR procurement mainly by conducting the following three activities: “CSR self-assessments,” “CSR visits” and “follow-up.” We foster these activities in a cycle of three years, targeting in principle all the goods and services that we purchase.

        1. 1 “CSR self-assessments”: We send CSR self-assessment questionnaires to our business partners and ask each of them to fill out the form to check for themselves how they are conducting CSR activities. We collect the completed forms, summarize the results and give feedback to the partners. In principle, we ask all new partners to fill out the forms when concluding agreements with them and to repeat this self-check once every three years.
        2. 2 “CSR visits”: The objective of CSR visits is to check how the business partners that are particularly important for the business continuity of our company and other business partners are conducting CSR activities. Our purchasing personnel visit these partners in person and check their CSR activities through interviews. We will continue to dialogue with as many partners as possible through the CSR visits as well as through the CSR self-assessments.
        3. 3 “Follow-up”: If any area needing improvement is found at any business partner as a result of a self-assessment and/or a CSR visit, we work closely together with the partner for improvement. Based on our findings, we might also propose improvement measures to the partner. 

Procurement of eco-friendly goods

Eco-friendly goods will be purchased as part of CSR procurement.  Business divisions in charge will decide on the details of items to be surveyed.

Conflict minerals

Purchasing minerals (tin, tantalum, tungsten and gold) from Congo and its neighboring countries is considered a large international problem because, by purchasing these minerals, you fund local armed groups and consequently have a part in local conflicts and cause human rights violations and environmental destruction. The Showa Denko Group incorporates measures to deal with the issue of conflict minerals in the Showa Denko Group’s CSR Procurement Guidelines. We ask our business partners to provide us with related supply chain information to avoid the purchase and use of these minerals. Also, in line with the recent social trends toward responsible minerals sourcing, we will add cobalt to the target of measures in addition to the aforementioned four minerals. We will continue making contributions to the international initiative for responsible minerals sourcing, recognizing the role to be played by the Group.

Measures for partners that have negative impacts on our business continuity

The Showa Denko Group might ask business partners to make improvements depending upon the results of the CSR self-assessments and CSR visits. We will also review our business relations with partners who we think do have a serious negative impact on our business continuity. According to the level of negative impact that might be caused by a partner, we will stop requesting quotes from and placing orders with the partner for a certain period, reduce the trade volume, or cancel the sales contracts concluded with the partner. We will decide whether to resume transactions with the partner or not after our purchasing personnel check how the partner has made improvements by interviewing the partner and confirm that our concerns about the negative impact have been mitigated or eliminated. We are responding rigorously to any instances of noncompliance with laws and regulations or with the Showa Denko Group’s CSR Procurement Guidelines.

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