Supply Chain Management

Basic Concepts

Rapid economic globalization has given rise to colossal multinationals. Many are extending their supply chains into developing economies in an effort to drive down costs. This trend has exacerbated socioenvironmental issues. Examples include human rights issues such as forced labor and child labor, widening inequality, and environmental degradation. Along with our supply-chain partners, we are determined to fulfill our corporate social responsibility by creating positive socioeconomic impacts.

KOKUYO Group Sustainable Procurement Policy

Desiring a sustainable planet and society, we commit to corporate social responsibility throughout our supply chain. We will build trust with our suppliers and communicate to them our values, particularly co-creation with empathy.

Quality management

We will satisfy customers and earn their trust by delivering products and services that enrich work, learning, and living. We will manage risks effectively and ensure the accuracy of information about our products and services.

Respect for Human Rights

We desire a world of intercultural understanding, where everyone’s human rights are respected. We will never tolerate unjustified discrimination, child labor, and forced labor, and will never deal with organizations that engage in such. We will never tolerate sexual harassment, workplace bullying/harassment, or similar violations of human rights.

Health and safety

We will comply with Japan’s Industrial Safety and Health Law and other legal and regulatory requirements concerning health and safety. We will pay fair wages and expenses, provide employee welfare programs, offer fair employment contracts, and comply with legal and regulatory requirements concerning employee rights. We will encourage sustained and self-led efforts to improve the workplace and work to prevent occupational accidents and disease.

Environment

As part of our corporate social responsibility, we will support environmental conservation at a global scale and involve local communities in these efforts. We will comply with environmental laws, integrate a concern for the environment into all our business activities, and organize initiatives that protect the environment and support biodiversity.

Fair and honest trade practices

In our procurement activities, we will comply with the laws of the territories in question, our contractual obligations, and industrial and international norms. We will maintain a strict policy of non-engagement with organized crime groups, including groups (including those labelled in Japan as “anti-social forces”) and another group that threatens public order or security. We will refuse all demands from such groups and never do any business with them. In these ways, we will honor the rights of our suppliers, prevent extortion, bribery, and all other forms of corruption, and ensure fair and honest trade practices.

Information security

We will safeguard commercially sensitive information (including information about sales, technology, and business strategy) and personal information from loss and leaks. We will never engage in insider trading (trading in a stocks of KOKUYO or an affiliate based on material information that is not yet in the public domain) or insider tipping.

Sustainable Procurement Guidelines

To ensure that our supply chain contributes to a sustainable planet and society, we established the KOKUYO Group Procurement Guidelines. Based on the Sustainable Procurement Policy, these guidelines clarify the requirements and expectations for both KOKUYO and our suppliers.

１．Quality management

1-1 Ensuring product safety

To fulfill our responsibility as suppliers, we will satisfy product safety standards specified in the laws of the territories concerned and prioritize product safety in design, manufacturing, and sales operations.
1-2 Quality management

To meet the customer’s requirements, we will comply with KOKUYO Group’s safety standards for products and services as well as legal and regulatory obligations related to such.
1-3 Ensuring accurate information

We will be transparent about our business activities and about product quality and safety, and ascertain and disclose information as necessary to meet stakeholder demands.
1-4 Risk management

We will maintain an effective risk management system to ensure continuity of supply in times of disaster.

２．Respect for Human Rights

We desire a world of intercultural understanding, where everyone’s human rights are respected. We will never tolerate unjustified discrimination. We will never tolerate child labor and forced labor. We will never deal with organizations that engage in such. We will never tolerate sexual harassment, workplace bullying/harassment, or similar violations of human rights.

2-1 Non-tolerance of child labor and forced labor

We will never tolerate unjustified discrimination. We will never tolerate child labor and forced labor. We will never deal with organizations that engage in such.
2-2 Non-tolerance of sexual harassment, workplace bullying/harassment, and discrimination

We will never tolerate sexual harassment, workplace bullying/harassment, or similar violations of human rights. We will make reasonable accommodations for religious observance.
2-3 Freedom of association, right to collective bargaining

In compliance with local laws and regulations, we respect employees’ freedom of association and their right to bargain collectively with their employer for better work conditions or wages.

３．Health and safety

3-1 Employee health and safety

We will prioritize employees’ health and safety and provide a safe, secure, and comfortable working environment.
3-2 Respecting employees’ time

We will never allow working hours to exceed the statutory limits. In managing employee working hours and time off, we will consider international standards.
3-3 Reasonable wages and expenses

We will comply with all applicable laws and regulations regarding employee compensation, including requirements for minimum wage, overtime pay, and legally mandated expenses and rent discounts). We will pay a living wage—a wage that covers the employee’s basic needs.
3-4 Emergency response

We will prepare for accidents, disasters, and other emergencies that threaten employees’ lives and health. We will identify the risks (including the likelihood they occur) and prepare emergency procedures and secure the necessary provisions to minimize damage to employees and assets. We will also organize training and drills so that employees understand what to do in an emergency.
3-5 Occupational accidents and disease

We will identify, assess, document, and report occupational accidents and disease and then take corrective and preventive action.
3-6 Workplace hazards

We will identify, assess, and control the risk of employees becoming exposed to biological, chemical, or physical hazards.
3-7 Considering workload

As part of our efforts to control the risk of occupational accidents and disease, we will identify and assess employees’ physical workload.
3-8 Machine safety

We will assess the machinery used by employees to ensure it poses no threat to employee safety.
3-9 Safety in employee amenities

We will ensure the safety of employee amenities such as accommodation, dining areas, and toilets.
3-10 Health and safety communication

We will educate and train employees in the workplace hazards using a language and approach they will understand, and incorporate employee feedback regarding health and safety.
3-11 Managing employee health and productivity

We will manage the health and productivity of all employees.

４．Environment

4-1 Reducing energy consumption and greenhouse emissions

We will make sustained efforts to use energy more efficiently, reduce energy consumption, and reduce greenhouse emissions.
4-2 Pollution

We will take reasonable steps to reduce atmospheric discharges of hazardous substances.
4-3 Water management

We will manage the environmental impacts of our water intake and wastewater discharges. As part of this, we will monitor and control the amount of water we use and discharge. We will monitor, control, and process pre-discharge wastewater. We will identify and control pollution sources that could contaminate water.
4-4 Protecting biodiversity

We will protect biodiversity in areas we source products from and in areas where we operate.
4-5 Using resources effectively, managing waste

We will use resources effectively and manage waste with the three Rs: reduce, reuse, and recycle.
4-6 Managing chemical substances

We will identify, disclose, and control chemical substances and other substances that are hazardous to human health and the environment. These controls will involve on ensuring safety when the substances are handled, transported, stored, used, recycled, reused, and disposed of.
4-7 Managing chemical substances in products

We will comply with legal prohibitions or restrictions on the use of certain substances in products. We will also comply with customer requirements related to such.
4-8 Community engagement

We will organize social, educational, and cultural programs. We will engage with communities, organize local cleanups, and encourage voluntarism.

５．Fair and honest trade practices

5-1 Promoting compliance

We will comply with local legal and regulatory requirements, societal norms, and corporate ethics. We will inform employees about the need for such compliance.
5-2 Fair and honest trading

We will engage in fair, free, and honest trading. When procuring, we will never exploit our position as the client and demand unreasonably low prices or special treatment.
5-3 Non-engagement with organized crime

We will maintain a strict policy of non-engagement with organized crime groups, including groups (including those labelled in Japan as “anti-social forces”) and another group that threatens public order or security. We will refuse all demands from such groups and never do any business with them.
5-4 Protecting intellectual property

We will protect intellectual property from unauthorized use.
5-5 No conflict of interest

No board member, executive, or employee will exploit their position for personal gain to the detriment of the company’s interests.
5-6 Whistleblower protection

We will treat whistleblower inquiries in confidence, protect whistleblowers’ anonymity, and never tolerate retribution against whistleblowers.
5-7 No insider trading

We will never engage in insider trading (trading in a stocks of KOKUYO or an affiliate based on material information that is not yet in the public domain) or insider tipping.
5-8 Responsible mineral procurement

In procuring the tantalum, tin, tungsten, and gold used in our products, we will monitor the mining enterprises in question to confirm that they are neither fueling nor contributing to human rights abuses, environmental destruction, corruption, or conflict in conflict-affected or high-risk areas.

６．Information Security

6-1 Cyber defenses

We will use cyber defenses to stave off the threat of cyberattacks that may harm our company or a third party.
6-2 Personal information protection

We will safeguard the personal information of suppliers, clients, consumers, employees, and other stakeholders as required by law.
6-3 Preventing information leaks

We will safeguard our own information and confidential information entrusted to us by a client or third party.

Sustainable procurement efforts

In 2022, we surveyed 549 suppliers about their sustainability efforts. Of these suppliers, 93% responded to the survey. In 2023, we will feed back the survey results to the suppliers and hold dialogues with some of the suppliers to help them address the concerns.

No. of suppliers	No. of respondents	Return rate
549	511	93％