The following is an introduction to the efforts of our Group to achieve long-term coexistence and co-prosperity with our suppliers.
Seiko Group Procurement Policy
The Seiko Group will fulfill its social responsibilities by contributing to the realization of a sustainable society through the implementation of our corporate philosophy – creating “A future filled with smiles all over the world” and of being “A company that is trusted by society.” To this end, the Group has established three key aims for its procurement policy: 1) Coexistence and co-prosperity with business partners; 2) Promoting procurement activities with proper consideration for the environment, society, and corporate governance; and 3) Fair and impartial selection of business partners.
The Group will expand its procurement activities globally based on these three policy aims, which are described in greater detail below.
1.Coexistence and co-prosperity with business partners
The Seiko Group and its business partners aim to build a relationship of mutual trust over the long term. It is our goal to continue to prosper together by helping each other.
2.Promoting procurement activities with proper consideration for the environment, society, and corporate governance
We will respect global social norms and work together with our business partners to promote responsible procurement activities that involve proper consideration for the environment, society, and corporate governance.
We will promote procurement activities that take into consideration the following factors (among others):
- Compliance with laws, regulations, and social norms
- Respect for human rights
- Protection of occupational safety and health
- Promotion of global environmental conservation
- Promotion of business continuity planning (BCP)
- Prohibition of bribes (including illegal gifts, payments, and benefits) to any stakeholder
3.Fair and impartial evaluation of business partners
We respect “fair, transparent, and free competition,” which is a fundamental rule of a freely competitive society, and we evaluate our business partners based on the following criteria:
- The partner must be active in environmental, social, and corporate governance initiatives
- The partner must be highly trusted as a company (Stable business conditions, appropriate risk management system, etc.)
- The partner must have technological capabilities that can contribute to Seiko Group products
- The quality, price, and delivery times of the items procured must be at appropriate levels.
We will conduct comprehensive evaluations based on these and other criteria.
We aim to improve the value of our entire supply chain by conducting business in accordance with this Seiko Group Procurement Policy.
Establishment of the Seiko Group Procurement Guidelines
We believe that by addressing environmental, social, and governance (ESG) issues throughout our supply chain, together with our valued partners, we can build a long-term relationship of trust with society and contribute to the realization of a sustainable society in harmony with local communities.
To this end, we have established the Seiko Group Procurement Guidelines as a guiding principles for our entire supply chain.
Supplier Certification System
When dealing with suppliers, Seiko Instruments Inc., and Seiko Solutions Inc. research such things as governance, codes of conduct pertaining to human rights, etc., environmental management, BCP and other risk management concerns, and management conditions. These companies use supplier certification criteria in accordance with the SHG Procurement Policy to fairly select suppliers.
Supplier Certification Criteria at Seiko Instruments Inc.
|Codes of conduct||Compliance with laws and regulations, management system protecting human rights, labor, information, etc.||Suppliers fill in the survey sheet|
|Survey on environmental management||Acquisition of environmental certification, environmental management system, initiatives||Suppliers fill in the survey sheet|
|Risk management, etc. survey||Acquisition of quality certification, BCP, supplier management||Suppliers fill in the survey sheet|
|Business conditions survey||Recent business performance and other financial conditions||Evaluation by external credit agency|
Evaluation and review
A score will be assigned to each survey item, and aggregate scores will be evaluated to determine if candidates meet a certain minimum standard.
Using the "Human Rights Risk Assessment,” Seiko Group Corporation identified significant human rights risks and established response policies for each major risk item to prevent and rectify these problems.
In particular, we specified "Establishing a Supplier Management System Based on Procurement Guidelines" as a response policy that requires urgent attention, and the Seiko Group is focusing its efforts on this policy.