Social Supply Chain
Basic ideas and 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 within and outside Japan (including contractors or agents) so that we can increase each other’s corporate value through compliance with the guidelines.
Activities in 2019
Each year we ask about 400 business partners to fill out the self-assessment questionnaires regarding the Showa Denko Group’s CSR Procurement Guidelines and thereby self-check their CSR activities. We ask major business partners to do it once every three years and all new partners to do it when starting business with us. In 2019, the total response rate came to 91%. We changed the self-assessment questionnaire items in 2018, and now our business partners perform a self-assessment regarding the following 9 items both within and outside Japan: promotion of corporate social responsibility (CSR) as a whole; quality & product safety; corporate ethics, compliance and fair trade; environmental preservation; safety & health of worksites; human rights & labor; information security; social contributions; and sustainable procurement.
Each year we make CSR visits to about 40 companies. In 2019 we visited 46. Since we launched this initiative in 2010, we have visited a total of 463 partners.
We scored the CSR measures taken by the partners who conducted CSR self-assessments and those to whom we made CSR visits. We clearly indicated to each their CSR level against the total average and industry average. We also sent feedback reports to all the partners who performed CSR self-assessments to give them advice for improvements.
■ Total average score for the 2019 CSR self-assessments and measures taken for improvements
|No. of cases||Rate||Measures for improvements|
|Total average score||59.0||Sent a feedback report (including a comparison with the total average score and industry average score, and requests for improvements) to each of the respondent companies.|
|50 and higher||247||72%||Requested improvements for the items for which problems were identified while working to further increase the scores for the items with high scores.|
|From 30 to below 50||78||22%||Requested improvements for the items for which problems were identified and proposed improvement measures. *Made visits as required to exchange views about each other’s measures. Will check the status of improvements in the next round of self-assessments.|
|Below 30||20||6%||Requested improvements for the items for which problems were identified and proposed improvement measures. *Made visits as required to discuss measures for early improvements. Will check the status of improvements in the next round of self-assessments.|
Training of purchasing personnel
For CSR procurement, we deem it important to increase the awareness and improve the skills of our staff in charge of purchasing. Accordingly, we provide them with a range of training and study opportunities. For the educational activities, we provide learning on various themes, including the concept of compliance; laws such as those related to antimonopoly, subcontractors, customs and foreign exchange; the civil code and other regulations; and also our internal purchasing procedures and rules on approval authority. We thus help the purchasing personnel at our plants and divisions to improve their performance. In 2019, a total of 1,051 Group employees received training on purchasing.
Toward the future
In corporate procurement activities, it is necessary to respond flexibly to changes in the economic environment, and it is also important to meet a range of social challenges in such activities. Based on this recognition, Showa Denko will work for CSR procurement, with a view to making social contributions its corporate mission.