In accordance with the Ebara Group Business Ethics Framework, we work to build stable relationships of trust with our suppliers as valued partners, and engage in fair and equitable transactions, in line with our procurement policy.
We request suppliers to follow our CSR procurement guidelines, as shown below.
<b>Provide fair and equitable opportunities</b>
We provide fair and equitable opportunities to all suppliers. To begin a business relationship with a supplier, we conduct a technological and commercial assessment using our proprietary certification system, consistent with ISO 9001. Upon completion of the certification, we enter into a basic agreement or basic work agreement and then proceed with the individual deal.
<b>Economic rationality in selecting suppliers</b>
When selecting suppliers, we comprehensively assess the quality of materials, reliability, delivery time, price, technological development capability, proposal capability, actions taken towards the environment, and financial soundness of the supplier.
We do not disclose to third parties any confidential information that we have acquired through our business dealings with suppliers without obtaining their approval.
We aim for mutual growth, and for building a relationship of trust and partnership with suppliers. All of the procurement section members are aware that they must maintain a good working relationship that fosters cooperation and creativity and promotes smooth and effective operational functionality with the internal and external sections concerned.
In our pursuit of a sustainable society, we promote responsible procurement, while paying close attention to compliance with Japanese and overseas laws, human rights, safety of products and services, quality guarantees, occupational health and safety, the environment, and corporate ethics.
The EBARA Group will pursue mutual prosperity with suppliers by building a long term partnership through fair and equitable procurement activities. CSR (Corporate Social Responsibility) is one of the key focus areas of our corporate activities, with the aim of improving corporate value, achieving continuous growth and furthermore, creating value for society. To realize this, it is necessary for suppliers, as one of our stakeholders, to drive forward CSR activities in the same way as the EBARA Group. Therefore, we have compiled areas in which we need suppliers’ cooperation in the form of the Ebara Group CSR Procurement Guidelines below. We ask for all suppliers’ understanding and for suppliers to promote CSR activities within their own organizations. In addition, we request all suppliers to abide by this guideline.
We request strict compliance with the laws, regulations and social norms of the countries related to the transaction, in addition to the implementation of appropriate internal controls including whistle-blowing systems, in suppliers’ organizations.
We request that suppliers respect fundamental human rights by prohibiting all types of unreasonable labor (child labor, forced labor, etc) or discrimination of any type, and providing a healthy and safe working environment.
Regarding handling of conflict minerals, which have a high risk of human rights violations, you may see “Conflict Minerals Policy” below.
We also ask for suppliers’ cooperation in establishing a business continuity management system (e.g., plans/countermeasures for emergency situations, etc.) and conducting of training to prepare for emergency situations (disasters, accidents, etc.).
Conflict Minerals Policy
We request suppliers to continuously promote activities that reduce the impact on the global environment. Please refer to the “Ebara Group Green Procurement Guidelines” for further details.
In order to supply satisfactory products and services to our customers, we request suppliers to provide us with products and services which are based on safe and superior quality, competitive price, reliable delivery and a stable supply system.
We request suppliers to continuously improve their technical capabilities.
We request suppliers to provide and disclose information positively.
We request suppliers to establish a system to properly manage and protect personal and confidential information, and to prevent obtaining, using, disclosing and leaking such information illegally or unreasonably.
We request suppliers to respect intellectual property and not to infringe the intellectual property of others.
We request suppliers to prohibit obtrusion and bribery.
We request that suppliers refuse any relationship with antisocial forces.
The environmental destruction and inhumane acts against local residents by anti-government armed groups in the Democratic Republic of the Congo and its neighboring countries have become serious international issues. Minerals such as tin, tantalum, tungsten and gold being mined in these countries have become a source of financing for the armed groups: these minerals are called “Conflict Minerals.” In responding to the call of the international community for cutting off funding sources from such armed groups, companies are now required to conduct appropriate material procurement avoiding the use of these Conflict Minerals in their products. As a member of global society, we take the issue of Conflict Minerals very seriously and address it as one of the most important CSR issues. We will implement concrete measures, with the support of our suppliers, for material procurement that will not give any advantage to the armed groups engaging in human right abuses.
The Procurement Management Committee deliberated on procurement business policies and measures to strengthen operations. The Comittee conducted the following activities in fiscal year ended December 2019 (FY2019):
Improved procurement operations
Introduced a supplier certification system
Conducted CSR Procurement Questionnaire
Responded to changes in laws and regulations
We administer CSR procurement surveys to suppliers to raise awareness regarding the CSR Procurement Guideline and also confirm the status of their CSR efforts.
※The questionnaire is based on the RBA Code of Conduct
In 2018 and 2019, we sent 2019 CSR Procurement Questionnaires to the suppliers that made up the top 70% of our annual domestic orders (330 suppliers). We found that 84% of respondents indicated they are conducting their business operations in line with the CSR Procurement Guideline. We provide feedback to participants and request voluntary improvements for low-scoring areas.
The EBARA Group aims to build mutual value-building partnerships with business partners to further enhance our reliability. In line with this philosophy, the Precision Machinery Business has been conducting physical inspections of supplier manufacturing facilities since FY2016. These inspections include checks regarding compliance with occupational safety and health and environmental laws and regulations, measures taken to prevent accidents, and the status of training and preparations for emergencies. After the inspection EBARA provides feedback including indicating action items. Suppliers report on the status of improvement, and EBARA provides support until we can confirm the improvements are complete. We will continue to work with our business partners to reduce operational risks.
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EBARA Group introduced SAP Ariba, Cloud Application for Indirect Material Procurement, in August 2021 for improving productivity, strengthening compliance, and optimizing purchasing. We will inform our suppliers in sequence.
*All materials/services other than those directly used in our products, such as raw materials and parts
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