Working with SuppliersWorking with Suppliers
Basic Concept
To build relationships of trust and realize fair and ethical business transactions, we established a Basic Purchasing Concept.
Amid growing interest from stakeholders on corporate social responsibility (CSR) in recent years, the Group is expected to go beyond its own borders to promote CSR throughout the entire supply chain. In response to these demands, the Group has published the Organo Group Supply Chain CSR Promotion Guidebook, promoting CSR initiatives in cooperation with related companies.
Organo Group Supply Chain CSR Promotion Guidebook
The Organo Group Supply Chain CSR Promotion Guidebook complies with the code of conduct of the Responsible Business Alliance (RBA)*, a nonprofit industry coalition that promotes corporate social responsibility (CSR) throughout global supply chains, and outlines requirements in five areas: "labor (human rights)," "health and safety," "environments," "ethics," and "management systems."
Organo Group Supply Chain CSR Promotion Guidebook
PDF files are available to view and download below.
*RBA: Responsible Business Alliance.
A nonprofit industry coalition that promotes corporate social responsibility (CSR) throughout global supply chains. Formed from more than 190 companies from all over the world, it aims to help companies fulfill social, ethical, and environmental responsibilities throughout their supply chains. The "RBA Code of Conduct" stipulates standards to ensure safe working environments, treat workers with respect and dignity, fulfill environmental responsibilities, and conduct business ethically. Originally focusing solely on the electronics industry, the organization formulated a code of conduct applicable to a wide range of industries in 2024.
*RBA: Responsible Business Alliance.
A nonprofit industry coalition that promotes corporate social responsibility (CSR) throughout global supply chains. Formed from more than 190 companies from all over the world, it aims to help companies fulfill social, ethical, and environmental responsibilities throughout their supply chains. The "RBA Code of Conduct" stipulates standards to ensure safe working environments, treat workers with respect and dignity, fulfill environmental responsibilities, and conduct business ethically.
Originally focusing solely on the electronics industry, the organization formulated a code of conduct applicable to a wide range of industries in 2024.
Supplier Surveys
A company’s level of CSR implementation is one indicator of the soundness of its corporate activities. Companies that are slow to implement CSR initiatives face the risk of being implicated in issues such as human rights violations, ethical issues, and environmental destruction. If any such issues were to occur with one of our business partners, it would not only cause procurement disruptions, but could also result in public criticism for using raw materials supplied by a problematic vendor.
In order to avoid such risks and work with our important business partners in fulfilling our corporate social responsibilities, the Organo Group conducts supplier surveys of CSR initiatives.
1. Survey target
This survey targets key suppliers with whom we have ongoing business relationships. Organo conducts surveys of major business partners identified based on their importance to our business and the value of procurements from them. The scope of the survey also includes the suppliers of our affiliated group companies.
2. Survey method
We ask responders to complete a self-check questionnaire.
3. Survey items
We conduct surveys on the status of our business partners regarding five topics from the Supply Chain CSR Promotion Guidebook: "labor (human rights)," "health and safety," "environments," "ethics," and "management systems."
4. Risk assessment
We assign a score to survey responses, establish a certain level of compliance, and assess the risk level.
These surveys are a continuous process. After evaluating risks, we conduct the same surveys once every three years on business partners who meet compliance levels, and once per year on business partners who do not.
CSR Promotion Training for Business Partners
We conduct training related to CSR promotion for major business partners who were unable to meet compliance levels during surveys. During training, we share information on CSR initiatives required of companies and on the current status and policies of the Organo Group, and call on participants to engage in CSR promotion together with us as partners.
Some of our business partners have been able to increase their survey scores by approximately 17% after attending training sessions.
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