Procurement Policies

1. Basic Procurement Policy

We conduct our procurement activities based on the following policies in the countries and regions in which we operate.

  1. We comply with laws, regulations, and social norms.
  2. BasBased on the principle of free competition, we will provide fair and equitable opportunities and select our partners strictly.
  3. We respect mutual benefit based on the philosophy of mutual harmony and prosperity and do not engage in conflicts of interest.
  4. We promote KAIZEN activities actively in cooperation with our partners.
  5. We build partnerships with our business partners through open communication.

2. CSR Procurement Guidelines

In support of the Guiding Principles on Business and Human Rights (United Nations Human Rights Council), the OECD Guidelines for Multinational Enterprises (Organisation for Economic Co-operation and Development), and the SDGs (Sustainable Development Goals), we will conduct our procurement activities based on the following guidelines in order to fulfill our requirements for corporate social responsibility and sustainability.

(1) Compliance

  1. 1.Compliance with laws and regulations
    • We comply with the laws, regulations, and social norms of each country, including competition laws, trade-related laws, and environmental laws.
    • We establish and implement policies, systems, and training to ensure compliance with laws and regulations.

  2. 2.Management of Confidential Information
    • We appropriately manage customer information, partner company information, personal information, technical information, and other information obtained through transactions, and use it appropriately.
    • The privacy and data obtained through transactions will be strictly controlled and protected.

  3. 3.Protection of Intellectual Property
    • We not infringe on the rights of third parties, including the unauthorized acquisition or use of their intellectual property.

  4. 4.Anti-corruption
    • We strive to build transparent and fair relationships with our partners, and will not entertain, give or receive gifts, money, or information for the purpose of obtaining or maintaining unfair profits or unfair preferential treatment.

  5. 5.Elimination of Anti-Social Forces
    • We do not do business with gangs, gangsters, people related to a gang or any other anti-social forces.

  6. (2) Human rights and labor

  7. 1.Respect for human rights
    • We do not tolerate discrimination on the basis of gender, age, nationality, race, ethnicity, creed, religion, sexual orientation, gender identity, disability, marital status, or the presence or absence of children in any employment or treatment (including application, hiring, promotion, compensation, right to education, job assignment, wages, benefits, discipline, dismissal, and retirement).
    • Harassment in any form, including power harassment and sexual harassment, will not be tolerated.

  8. 2.Working Environment
    • All work shall be voluntary, and no forced labor shall be tolerated due to lack of consent to work and threat of punishment.
    • There shall be no child labor in which the age of employment is below the minimum age for employment under the laws, rules, regulations, and international norms of each country and region.
    • Illegal or other illegal labor by foreign nationals shall not be permitted.
    • We ensure the occupational health and safety of our employees and comply with the laws and regulations of each country and region.
    • We comply with the laws and regulations of each country and region regarding minimum wages, overtime work, wage deductions, piece-rates, other benefits, working hours (including overtime hours), holidays, and entitlement to annual paid leave.
    • We do not prevent employees from joining or forming labor unions in accordance with the laws and regulations of each country and region.
      We also approve the exercise of the right to collective bargaining.

  9. (3) Quality and safety

  10. In order to earn the trust of customers and consumers, we will develop and procure products with "quality first" and "safety first" as our top priorities.
  11. (4) Environmental conservation

  12. Aiming for harmony with the environment, we will comply with the environmental laws and regulations of each country and region, and conduct procurement activities based on the "EKK Green Procurement Guidelines" in consideration of the global environment and the realization of a sustainable society.
    In addition, we will strive to give due consideration to the environment in relation to transportation, and will actively work to simplify packaging, use recycled materials, use environmentally friendly packaging materials, and use packaging and cushioning materials that can be used repeatedly.
  13. (5) Community and Society
  14. 1.Responsible procurement
    • We strive to avoid procurement and use of products and raw materials from countries and regions that may cause human rights, environmental and other social problems.
    • We work toward the non-use of minerals and their processed products that are the source of funding for armed groups that are engaged in inhumane acts.

  15. 2.Conflict Minerals

    Our basic policy is to avoid the use of conflict minerals produced in the Democratic Republic of Congo (DRC) and surrounding countries, and to eliminate conflict minerals that fund or benefit antisocial armed groups in conflict areas. To ensure compliance with the policy, we request our partners to procure minerals from smelters that have been certified as free from complicity in conflict or serious human rights abuses.
    In order to realize the policy, we will eliminate all forms of human rights violations in our corporate activities and supply chain, and promote initiatives to procure raw materials that are not involved in conflicts and mitigate risks.

    • We conduct sufficient research when purchasing raw materials, and will not purchase conflict minerals (tantalum, tin, gold, tungsten) or cobalt produced in the Democratic Republic of the Congo and neighboring regions that may be a source of funding for armed groups. In addition, we will not purchase materials that have not yet been confirmed by our partners.
    • We spare no effort to cooperate with surveys on conflict minerals conducted by our customers, and will work together to eliminate conflict minerals and conduct responsible procurement activities.
    • We collect information related to Conflict Minerals and review the content and progress of our measures to make them more effective in light of the above objectives.

  16. 3.Contributing to Local Communities
    • While cooperating with the local community, we will pay attention to the issues facing the community and aim for social contribution activities that lead to the resolution of those issues.
    • We contribute to local communities’ development with aggressive procurement from local suppliers.

  17. 4.Information Disclosure
    • e disclose business information on management and finance, as well as information on product handling, safety, quality, and the environment, to all stakeholders in a timely and appropriate manner, and strive to maintain and develop mutual understanding and trustful relationships with stakeholders through open and fair communication.

  18. (6) Crisis management for business continuity
  19. In preparation for the occurrence of crises such as cyber-attacks, information leaks, natural disasters, infectious diseases, fires, and accidents, we will establish a systematic management system for business continuity and implement thorough crisis management.

  20. (7) Sharing awareness with partner companies
  21. We work to ensure that our Charter of Corporate Behavior and Procurement Policy (Basic Procurement Policy and CSR Procurement Guidelines) are respected throughout the procurement supply chain.

3. Requests to Our Partners

    (1) Understanding and request for the "Procurement Policy (Basic Procurement Policy and CSR Procurement Guidelines)

    We believe that it is important to share awareness of CSR activities throughout the entire procurement supply chain in order to fulfill our corporate social responsibility. We would like to ask our partner companies to understand our "Procurement Policy (Basic Procurement Policy and CSR Procurement Guidelines)" and to respect our "Charter of Corporate Behavior" and "Procurement Policy (Basic Procurement Policy and CSR Procurement Guidelines)" and make the same efforts.

    (2) Deployment to suppliers of partner companies

    We would like to ask our partner companies to disseminate their CSR initiatives to their suppliers by developing their own policies and guidelines based on the above objectives.

    (3) Declining your kindness from partners.
      1. 1.We not accept any kindness (money, gift certificates, book coupons, gifts, special discounts on products, etc.) from our partners.
      2. 2.We decline to attend dinners, golf games, etc., unless agreed upon in advance between the partner company and us.
      3. 3.We not buy or sell shares based on internal information of the partner company.
      4. 4.We do not receive any benefits or favors that are inappropriate under normal social conventions.

4. Consultation Service

We set up a consultation desk for suppliers who have compliance questions regarding transactions with us.
(Corporate Strategic Planning Office or Administration Dept. of Corporate Administration Office)

  1. This consultation desk seeks to resolve problems by receiving information from our business partners when they are aware of a violation of laws or regulations (or alleged conduct) by us or our employees in transactions with us.
  2. We confirm the facts regarding the contents of the whistle-blowing and take appropriate measures. In addition, we may ask for your cooperation in checking and examining the facts.
  3. In accordance with the Company's policy on whistle-blowing and protection from retaliation, the Company will not cause any disadvantage to the whistle-blower or his/her employer, and will protect the whistle-blower from retaliation.
  4. The above does not apply to cases where the content of the report intentionally contains incorrect information.

Green Procurement Guidelines

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