Action Guidelines for Global Procurement
The Shinano Kenshi Group has established the Action Guidelines for Global Procurement which set forth specific standards of conduct for its employees who are involved in procurement activities. Its purpose is to establish the basic rules related to procurement activities in accordance with Shinano Kenshi's Goals and the Basic Policies for Global Procurement. To implement these rules, we kindly request the understanding and cooperation of all of our suppliers.
Action Guidelines for Global Procurement
When engaging in procurement activities, each and every Shinano Kenshi employee should be well aware of being a representative of Shinano Kenshi, realizing that each individual's speech and conduct may directly affect the company's social evaluation and reputation.
1. Compliance with Laws and Regulations
- (1) Our employees should conduct procurement activities by observing related laws, regulations, social norms, Shinano Kenshi Group Code of Conduct, Basic Policies for Global Procurement, and internal rules (administrative rules, guidelines, and operation procedure manuals) of the Shinano Kenshi Group companies, while always bearing in mind Shinano Kenshi's Objectives and Employee Principles.
- (2) Our employees should request our suppliers to understand our Group Code of Conduct and our Basic Policies for Procurement while simultaneously requesting them to comply with related laws, regulations, and social norms.
- (3) Regarding confidential information on any supplier or other third party which our employees have obtained in the process of procurement activities, they should strictly administer it and never disclose it without explicit prior consent of the supplier or concerned third party.
2. Fair and Impartial Trade
- (1) Our employees should offer fair and impartial opportunities for business transactions to all interested suppliers.
- (2) In principle, however, our employees should not initiate or engage in business transactions that are based on personal relationships with themselves or other employees, or with families of employees.
- (3) Our employees should choose suppliers strictly in accordance with related laws, regulations, social norms, Shinano Kenshi Group Code of Conduct, Basic Policies for Global Procurement, and the internal rules of the Shinano Kenshi Group companies, as well as requests from our customers.
- (4) The foregoing choice of suppliers should be conducted fairly from the viewpoint of economic rationality and social validity, taking the following evaluation items into consideration:
• Quality, price, delivery lead-time
• Technological strength
• Soundness of management
• Environmental considerations
• CSR initiatives
- (5) When choosing a supplier, our employees, in principle, should take price quotations from at least two suppliers.
- (6) Each procedure for taking price quotations, deciding on the price, and placing an order should be the jurisdiction of different persons, which also should be reviewed periodically.
- (7) Our employees should evaluate our suppliers periodically to allow suppliers to be switched as needed or have order quantities and transaction relationships reviewed for improvement.
- (8) Our employees should not receive entertainment benefits or gifts from suppliers beyond our internal rules. Nor should they offer excessive entertainment benefits or gifts to our customers.
- (9) Upon choosing suppliers, our employees should not consider whether there are entertainment benefits or gift-giving from interested suppliers.
3. Establishing Favorable Partnerships
- (1) Our employees should strive to foster favorable relationships of trust with suppliers – our partners – by promoting mutual understanding through our honest conduct and fair judgment.
- (2) Our employees should aim to realize co-prosperity with our suppliers by establishing favorable and appropriate partnerships based on mutual trust.
4. Environmental Considerations
- (1) To conserve the vital global environment, our employees should promote their procurement activities in accordance with the Shinano Kenshi Group's environmental management system.
- (2) Our employees should promote the procurement of raw materials, parts and components, and supplies that have as little negative impact on the environment as possible.
- (3) Our employees should address the establishment of a recycling-based sustainable society by requesting that our suppliers promote environmental considerations and collaborate with us in environmental conservation.